HEARING OF THE SENATE
ENVIRONMENTAL A CALL THE
COMMITTEE IN THE SENATE BUDGET.
SUBCOMMITTEE NUMBER TWO ON
RESOURCES ENVIRONMENT PROTECTION
ENERGY AND TRANSPORTATION.
TO ORDER.
.
TODAY WE'RE CONDUCTING AN
OVERSIGHT HEARINGS WHICH.
WEAVING TILE CALIFORNIA'S CAP
AND TRADE PROGRAM THE YOUR
RESOURCE BOARDS TWO THOUSAND
SEVENTEEN SCOPING.
A
UP PLAN AS WE ALL KNOW A.
ASSEMBLY BILL THIRTY TWO WAS
GROUNDBREAKING LEGISLATION WHEN
IT WAS PASSED IN TWO THOUSAND
SIX
SETTING CALIFORNIA'S PATH. AS AN
INTERNATIONAL LEADER IN A
PARTICIPANT IN REDUCING A GLOBAL
GREENHOUSE GAS. EMISSIONS
IN THE LAST TWO YEARS CALIFORNIA
HAS SOLIDIFIED ITS ENDORSEMENT
OF THE.
.
ASSEMBLY BILL THIRTY TWO MODEL
FOR CLIMATE CHANGE MITIGATION TO
THE PASSAGE. OF SENATE BILL
THIRTY TWO WHICH IS SETTING A
NEW GREENHOUSE GAS EMISSIONS
REDUCTION GOAL OF FORTY PERCENT
BELOW NINETEEN NINETY LEVELS BY.
THE YEAR TWENTY TH AT THIRTY AND
ASSEMBLY BILL THREE NINE EIGHT
WHICH CONTINUES HERE RESOURCES
SPORTS AUTHORIZATION TO UTILIZE.
A CAP AND TRADE PROGRAM POST
TWENTY TWENTY IN ORDER TO
ACHIEVE OF THE SCHOOLS.
NOW THE SCOPING PLAN REQUIREMENT
I IS TO ACT IS THE ROADMAP FOR
THE STATE TO ACHIEVE THE MAXIMUM
TECHNOLOGICALLY FEASIBLE AND THE
COST EFFECTIVE REDUCTIONS FOR
GREENHOUSE GAS EMISSIONS.
AT THAT INTERSECTION OF THE
FINAL IMPLEMENTATION OF THE AS
BY AB THIRTY TWO REQUIREMENTS
THE FUTURE IMPLEMENTATION OF AB
THREE NINE EIGHT. AND S. B.
THIRTY TWO THIS
TWENTY SEVENTEEN SCOPING PLANNED
SITS AT THE.
PRECIPICE OF ATTAINING
CALIFORNIA'S CLIMATE CHANGE
GOALS POST TWENTY TWENTY.
POSTS TWENTY THIRTY AND BEYOND.
AS WE LOOK FOR TICKED
CALIFORNIAN THAT TWENTY THIRTY
TWENTY FORTY TWENTY FIFTY AREA A
WE HAVE TO ASK IS THIS PLAN
ADEQUATE TO MEET CALIFORNIA'S
NEEDS.
IN ORDER TO ANSWER. ARE THIS
QUESTION IT'S CRITICAL THAT
THERE BE. A.
A IT'S CRUCIAL THAT THERE BE A
CRITICAL ANALYSIS OF THE TWENTY
SEVENTEEN SCOPING PLAN IN
PREVIOUS PLANS AT TO EVALUATE
WHETHER THEY SUCCESSFULLY
ACHIEVE THE GOALS THAT MANDATES
THAT THE STATUTES.
OR WHAT WEATHER CHANGES EITHER
LEGISLATIVELY OR VOLUNTARILY AND
COOPERATIVELY WITH THE YOUR
RESOURCE FOR WORDS ARE NEEDED
NEEDED TO ACTUALLY STRENGTHEN
THE PROGRAM.
IN REVIEWING THE PREVIOUS
SCOPING PLANS WILL GET WE NEED
TO ASK FOR THE MODELLING AND
ASSUMPTIONS UTILIZE ACCURATE OR
INACCURATE.
AND HAS THERE BEEN SYSTEMATIC
BIASES OR PATTERNS WERE
FORECASTS TURN OUT TO BE
INCORRECT THAT RESULTED IN
EITHER UNDER OR OVER PERFORMANCE
OF THE GREENHOUSE GAS EMISSIONS
REDUCTIONS.
WITHOUT THIS BASIC KNOWLEDGE.
STATES IN SERIOUS JEOPARDY OF
NOT ACHIEVING ARE SENATE BILL
THIRTY TWO TARGET.
CLIMATE CHANGE STANDS TO BE THE
SINGLE MOST DEFINING
ENVIRONMENTAL IF NOT OVERALL
CHALLENGE.
OF OUR LIFETIMES PERHAPS
MISTAKES WERE MISSTEPS
IN OUR RESPONSE WILL RESULT IN A
CATASTROPHIC AFFECTS ON
CALIFORNIA AND THE WORLD.
TODAY IT'S IMPERATIVE THAT WE DO
THIS CRITICAL ANALYSIS OF THE
STATE'S EFFORTS TO ENSURE THE
BEST POSSIBLE OUTCOMES.
FOR CALIFORNIA. AND FOR THE
WORLD.
FILTERING UPPER WITNESSES WE
HAVE CHAIRPERSON.
NICHOLS
I IN DECEMBER.
THE COMMITTEE A. BAD CENTER
SERIES OF QUESTIONS WHICH WE
SEEK RECEIVED RESPONSE SO WE'D
LIKE TO START WITH GOING THROUGH
THOSE QUESTIONS IF I COULD HAVE.
A MISTER BOB ROSS BROWN AND ANY
COLUMN WORTH THE THREE OF YOU IF
YOU CAN COME UP. AND I DO HAVE
MY SUBCOMMITTEE CHAIRS I WAS
RIVER MESS I HAVE. CENTER STONE
FROM THE.
ENVIRONMENTAL QUALITY COMMITTEE
AND CENTER NIELSEN FROM THAT.
SENATE BUDGET TO COMMITTEE AND
IF YOU GUYS HAVE ANYTHING YOU
WANT TO ADD IF WE GET INTO THE
QUESTIONS.
PERFECT.
I'M.
YOUR PERSON THAT BECAUSE IF YOU
HAVE SOME INTRODUCTORY REMARKS
SAID YOU'D LIKE TO. COMMENT ON.
ACTUALLY AYE I DO SENATOR CLASSY
AND.
I HAD BEEN UNDER THE IMPRESSION
BASED ON EARLIER CONVERSATIONS
THAT YOU WANTED ME I'M HAPPY TO
ADDRESS YOUR QUESTIONS AT
WHATEVER POINT BUT I HAD THOUGHT
THAT YOU WANTED AND NEEDED TO
ADDRESS THE SCOPING PLAN. MORE
BROADLY TO SET THE STAGE THEN
FOR THE REST OF THE DISCUSSIONS
SO I DO HAVE PREPARED TESTIMONY
AND IF ALLOWED HOPELESSLY I
WOULD USE IT. PLEASE CLOSELY
STUDIES OKAY THANK YOU SO MUCH.
SO OUT THANK YOU FOR HAVING
HERE TODAY BUT I APPRECIATE THE
OPPORTUNITY.
AND THE OVERSIGHT I THINK IT'S
IMPORTANT THAT WE ALL ABBY
EXAMINING HOW WE'RE DOING IT
EVERY STEP OF THE WAY WITH THIS
PROGRAM BECAUSE WE'RE GOING TO
BE IN IT TOGETHER FOR A LONG
TIME AND. AS YOU'VE POINTED OUT
MISTER CHAIR OF THE. RESPONSES
THAT OUR RESPONSES TO WHAT'S
HAPPENING GLOBALLY ARE NOT ONLY
HOW
IMPORTANT FOR US BUT THEY ARE
IMPORTANT FOR THE WORLD SO. I
THINK THIS IS A VERY TIGHTLY AT
HEARING AB WE DID PROVIDE
WRITTEN RESPONSES TO THE
QUESTIONS THAT YOU SENT WITH THE
INVITATION THEY'RE QUITE
EXPENSIVE.
BUT WE CAN CERTAINLY GO THROUGH
THROUGH THE MORE.
LET ME TO A COLDER SUPPORT FOR
ITS
APPROVAL WAS VERY STRONG IF NOT
OVERWHELMING.
THIS IS THE THIRD SCOPING PLAN
IT WAS DEVELOPED OVER A PERIOD
OF TWO AND A HALF YEARS AND
WE'VE ALREADY LEARNED A LOT
SINCE WE STARTED ON THIS IT TWO
THOUSAND AND TWO THOUSAND AND
EIGHT. AND ALTHOUGH WE DO
CONTINUE THE BASIC APPROACH OF
MIXING REGULATIONS AND
INCENTIVES ALONG WITH A MARKET
BASED PROGRAM THE CAP AND TRADE
PROGRAM. OTHERS REALLY BEEN A
LOT OF CHANGES AS THIS PROGRAM
HAS A MOVED ALONG SAND SAYS
ALMOST A DECADE AGO.
LET ME JUST SAY.
ONE OF THE THINGS I'D LIKE TO
STRESS AT THE OUTSET AND I KNOW
THIS WAS NOT ONE OF YOUR
QUESTIONS BUT. I THINK IT'S
IMPORTANT ALSO IN SETTING THE
STAGE FOR FOR ALL OF US IS THAT.
AS YOU KNOW GOING BACK TO AB
THIRTY TO. OUR PROGRAM WAS BASED
ON THE ADOPTION OF CALIFORNIA'S
GROUND. VEHICLE EMISSIONS
STANDARDS HAND THE PALAIS
LEGISLATION THAT I TOLD A ARE BE
TO ADOPT GREENHOUSE GAS EMISSION
STANDARDS FOR MOTOR VEHICLES.
IT'S STILL LEAH'S
BUT WHAT'S CHANGED IN THAT
REGARD IS THAT AFTER LITIGATION
AND A CHANGE OF ADMINISTRATIONS
WE'VE NOW HAD ANOTHER CHANGE OF
ADMINISTRATIONS WHERE.
WE HAVE REASON TO BE CONCERNED
ABOUT WHETHER OUR ABILITY TO
CONTINUE MOVING FORWARD WITH
VEHICLE EMISSION STANDARDS.
WILL BE MAINTAINED AS IT HAS
BEEN IN THE PAST.
THERE HAVE BEEN INDICATIONS
FROM TESTIMONY AND PRESS
ACCOUNTS.
THAT UP THERE ARE PEOPLE WITHIN
THE. ADMINISTRATION IN
WASHINGTON CURRENTLY WHO IN
ADDITION TO ACTIVELY QUESTIONING
WHETHER CLIMATE CHANGE IS REAL
AND MOVING TO DISMANTLE A WHOLE
VARIETY OF REGULATIONS THAT. THE
OBAMA ADMINISTRATION HAD PUT IN
PLACE OVER THE LAST YEARS
WITHDRAWING FROM THE PARIS
CLIMATE AGREEMENT ETCETERA.
ARE ALSO QUESTION WHETHER
CALIFORNIA ISN'T.
GOING TOO FAR IN TERMS OF
SETTING STANDARDS THAT OTHER
STATES MIGHT FOLLOW AND THEN
BASICALLY.
TORQUING OR AT TWISTING THE
WHOLE NATIONS APPROACH AS A
RESULT OF OUR LEADERSHIP ON
THESE ISSUES. NOW WE DON'T HAVE
ANY WHICH WE HAVE NO LITIGATION
WITH THE FEDERAL GOVERNMENT ON
THESE ISSUES AT THE MOMENT WE
ARE TALKING TO.
THE PEOPLE EPA AND NHTSA WHO
ARE OUR COUNTERPARTS WE ARE OUT
DOING EVERYTHING WE CAN TO
MAINTAIN A PRODUCTIVE WORKING
RELATIONSHIP.
WITH THE FEDERAL GOVERNMENT ON
THESE ISSUES BUT I THINK IT'S
IMPORTANT TO SHARE WITH YOU THE
FACT THAT.
.
THE ABILITY THAT CALIFORNIA
CHOICE UNDER THE FEDERAL CLEAN
AIR ACT AND HAS ENJOYED GOING
BACK TO NINETEEN SEVENTY. IS
REALLY THE BEDROCK OF OUR OUR
WHOLE PROGRAM AND IT'S MORE
CRITICAL NOW THAN EVER AS WE SEE
THAT TRANSPORTATION EMISSIONS.
ARE FIFTY PERCENT OF ALL OF OUR
EMISSIONS OF GREENHOUSE GASES IF
YOU ADDED BOTH THAT HEAVY DUTY
AND. PASSENGER CARS AND ALL THE
RELATED EMISSIONS FROM A FEELING
THOSE VEHICLES AND AND PRODUCING
THE FUEL AND SO FORTH. FIFTY
PERCENT OF THIS IS ATTRIBUTABLE
TO OUR TRANSPORTATION SYSTEM.
AND.
WITHOUT THE ABILITY TO CONTINUE
TO.
WORK CONFIDENTLY IN THAT AREA
WITH THE SUPPORT OF THE FEDERAL
GOVERNMENT. WE WOULD BE IN A
VERY DIFFERENT POSITION AND WE
ARE TODAY SO.
I JUST WANNA MAKE SURE THAT WE
HAVE SHARED WITH YOU THE CONCERN
AND.
RECOGNIZE THAT THIS IS AN AREA
WHERE WE WILL BE CONTINUING TO
COMMUNICATE WITH YOU AS WE AS W
SEE ANY ANY ACTIONS.
IN THAT AREA SO I'M SURE
PRESENT NICHOLSON IF THE
COMMITTEES NO YEAH R. WEAVERS
ARE GRANTED I BELIEVE THROUGH
TWENTY TWENTY SIX IS THAT.
IS THAT THE WE HAVE A ACTUALLY
HAVEN'T WE HAVE MANY WAIVERS
FROM THE FEDERAL GOVERNMENT
BECAUSE EVERY TIME WE DO
ANYTHING SLIGHTLY DIFFERENT IN
THE WAY WE IMPLEMENT OUR
PROGRAMS IT REQUIRES A SEPARATE
WAIVERS SO. WE ACTUALLY AT THIS
POINT DESPITE HAVING CLEARED A
BIG BACKLOG OF WAIVERS.
WE STILL HAVE A COUPLE BUT
THEY'RE THEY'RE RELATIVELY
UNIMPORTANT THE KEY ISSUE THAT
YOU'RE TALKING ABOUT I BELIEVE
IS THE. SO CALLED AT ONE
NATIONAL PROGRAM WHICH WE IN
WHICH WE CALIFORNIA AGREED TO
ACCEPT THE FEDERAL GREENHOUSE
GAS EMISSIONS STANDARD AS BEING
THE EQUIVALENT OF THE CALIFORNIA
STANDARDS SO. THE STANDARD THAT
EPA ADOPTED FOR GHG EMISSIONS
AND THEY DID THAT AT THE SAME
TIME THAT NHTSA ADOPTED A NEW
CAFE STANDARDS WE SIMULTANEOUSLY
SAID. OKAY YOUR STANDARDS ARE AS
GOOD AS OURS WE WILL ALLOW
ANYBODY THAT MEETS THOSE
STANDARDS TO SELL CARS IN
CALIFORNIA IT'S A. IT'S A NOT A
CAR BY CAR STANDARD IT'S
ACTUALLY A TOP ATHLETE STANDARD
SO YOU WOULDN'T KNOW UNTIL YOU
GO BACK IN TIME THAT THE MATTER
NOT BUT. IT WAS A IT WAS A GREAT
MOMENT I WOULD SAY IN THE
HISTORY OF THE US REGULATORY
PROGRAM IS CERTAINLY. VERY
MEANINGFUL TO THE AUTO INDUSTRY
WHEN WE WERE ABLE TO DO THIS
BECAUSE THEY FELT THAT THEY HAD
ACHIEVED A LONGSTANDING GOAL OF
THEIRS WHICH WAS TO BE ABLE TO.
WORK TOWARDS ONE NATIONAL
STANDARD.
IF THE FEDERAL GOVERNMENT ROLLS
BACK THE STANDARDS WHICH THEY
ARE NOW LOOKING AT DOING AS PART
OF THE MID TERM REVIEW THAT
THEY.
INITIATED AFTER.
AFTER THE NEW ADMINISTRATION
CAME IN. THEY HAVE THE ABILITY
TO PROPOSE OUGHT TO TO CHANGE
THAT STANDARDS OUT GOING FORWARD
FOR THE TWENTY TWENTY ONE OR
TWENTY TWENTY TWO THROUGH TWENTY
TWENTY FIVE PERIOD. AND THAT'S
REALLY THE CRUX OF WHERE WE HAVE
A POTENTIAL A DISPUTE BECAUSE.
IF THEY WERE TO WEAKEN THOSE
STANDARDS IN A WAY THAT ALSO
UNDERCUT OUR ABILITY TO MEET THE
STANDARDS THAT YOU WOULD WE HAVE
HAVE SAT. ON WE WOULD BE IN IN
DEEP TROUBLE.
AND WE WOULD HAVE TO COME UP
WITH OTHER.
APPROACHES OTHER MECHANISMS
PERHAPS TO ACHIEVE THOSE SAME.
EMISSIONS REDUCTIONS WHICH
COULD INVOLVE.
LOOKING AT OTHER SECTORS.
OR PUT INVOLVED.
NEW AS YET UNKNOWN WITH
REGULATIONS THAT WOULD AFFECT
DRIVING OR AFFECTED HOW CARS
COULD BE USED IN CALIFORNIA MEAN
THERE WITH A. LIST OF OF YOU
KNOW WHAT OUR PLAN BE IS GONNA
BE BECAUSE WE DON'T THINK THERE
WILL BE A PLAN B. OR THAT THERE
SHOULD BE A PLAN THE BUT.
I CAN'T BE SURE.
TRULY CAP AND TRADE WOULD BE ONE
OF THE.
THEIR LIVES CAPITAL RAGGED
REMAINS.
ABSOLUTELY ONE OF THE TOOLS AND
IT COULD BECOME A MARSH IT WOULD
HAVE TO BE MORE AGGRESSIVE TO
MAKE UP FOR THAT LOSS
ABSOLUTELY.
THANK YOU.
SO.
DISTILLERY QUICKLY.
GO ON HERE.
THE MIX OF STRATEGIES THAT
CALIFORNIA HAS USED OVER THE
LAST TEN YEARS AND IN OUR
PREVIOUS SCOPING PLANTS. IS
PRETTY MUCH MAINTAINED AS A
PHILOSOPHY.
GOING FORWARD.
AND THE REASON IS PRETTY.
STRAIGHTFORWARD.
WE THINK THAT IT GIVES US THE
GREATEST ASSURANCE IF WE HAVE
MULTIPLE.
STRINGS TO OUR BORROWED THAT WE
WILL ACHIEVE THE TARGETS AND
THAT ALSO OFFERS US MORE
OPPORTUNITIES TO ACHIEVE CO
BENEFITS.
AS WELL AS.
RESULTING IN A PROGRAM THAT'S
MOST COST EFFECTIVE AND HAS BEEN
ALSO A SUCCESS IN TERMS OF
ATTRACTING MULTIPLE PARTNERS AND
INVESTORS AND THAT IN TURN IS A
BENEFIT FOR CALIFORNIA. CAP AND
TRADE PROGRAM IS A PART OF THAT
PACKAGE IS ESSENTIAL.
WE'VE THINK IT PROVIDES SOME.
INDEPENDENT BENEFITS BUT IT'S
ALSO THE BACKSTOP FOR FOR THE
OTHER MEASURES AND IT CERTAINLY
HAS ATTRACTED A LOT OF ATTENTION
INCLUDING.
IDEAS FROM MANY AND.
THE AYE AYE ADVOCACY WORLD IN
THE ACADEMIC COMMUNITY AND
OTHERS ABOUT WAYS IN WHICH IT
COULD BE BETTER.
THEN PUT THAN WHAT WE HAVE
TODAY.
WE ARE IN THE PROCESS OF.
WORKING ON SOME AMENDMENTS IN
RESPONSE TO.
THE LAST LEGISLATION THAT
DIRECTED US TO MAKE CERTAIN
SPECIFIC CHANGES IN THE CAP AND
TRADE PROGRAM AS PART OF
REAUTHORIZING AND A ARBY'S
ABILITY TO GO FORWARD WITH THE
PROGRAM. AND WE ARE BUSILY
GATHERING INFORMATION.
FROM ALL THE STAKE HOLDERS THAT
ARE OUT THERE AND.
WE ARE LOOKING TO. SEE WHAT
WHAT WE CAN DO TO AND PUT THIS
ON TRACK FOR EVEN GREATER
SUCCESS UP IN THE IN THE YEARS
TO COME. AYE I'D I THINK YOU
KNOW WHAT I I DO WANT TO
REITERATE THAT.
.
AS YOU SAID TWENTY THIRTY IS A
MILESTONE ON THE WAY TO TWENTY
FIFTY.
WE NEED TO KEEP EVALUATING HOW
WE'RE DOING.
NOT JUST ON A.
NOT JUST BECAUSE OF OF THE NEED
FOR OVERSIGHT THAT BECAUSE THE
TECHNOLOGY'S CHANGING AND.
THE GLOBE IS CHANGING AND.
IT'S IMPORTANT IT A ARBY'S
REGULATIONS ALSO REFLECT WHAT'S
HAPPENING AT THE SAME TIME ONE
OF THE GREAT ADVANTAGES OF
CALIFORNIA'S PROGRAM IS THAT WE
HAVE SET LONG TERM TARGETS. AND
USED A SCOPING PLAN.
MECHANISM AS A WAY TO LAY OUT
THE DIRECTION THAT WE'RE HEADED
AND SO.
THERE'S LIKE A COMBINATION AYE
BUT SAY OF THE TARGET SETTING
AND THEN THE IMPLEMENTATION. AS
AN EXAMPLE OF THAT WOULD BE THE
LOW CARBON FUEL STANDARD WHERE
AS I THINK YOU POINTED OUT AND
MONEY FOR YOUR QUESTIONS.
WE HAVE.
IN THE SCALP IMPLANT SENT FORTH
AND EIGHTEEN PERCENT CARBON
INTENSITY TARGET WHICH AT THE
TIME THAT WAS WE WERE DEVELOPING
THE SCOPING PLAN.
BASED ON THE EVIDENCE THAT WE
HAD SEEMED LIKE THE MOST.
LIKELY COST EFFECTIVE POINT
DECIDED THAT WE HAVE RECEIVED
INFORMATION FROM OTHERS.
THAT INDICATES THERE STRONG
VIEWS AND AND HAD AND THEY'VE
GIVEN EVIDENCE TO SUPPORT THOSE
WHO USE THAT.
WE COULD DO BETTER AND WE ARE
ABSOLUTELY CONSIDERING.
WHETHER WE COULD SET A MORE
STRINGENT TARGET AS PART OF THE
SCOPING PLANNED.
BUT I THINK.
ONE OF THE THINGS THAT I HOPE
WE HAVE TRIED TO MAINTAIN.
THROUGHOUT THIS PROCESS OF
IMPLEMENTING CALIFORNIA'S
CLIMATE.
LEGISLATION IS THAT EACH AND
EVERY REGULATION NEEDS TO MEET
THE TEST OF COST EFFECTIVENESS
AND TECHNICAL.
STATE OF THE ART BUT WE ALSO
HAVE CHOICES WHEN WE PUT THE
WHOLE PROGRAM TOGETHER IN TERMS
OF WHETHER IF ONE PROGRAM TURNS
OUT TO BE MORE EFFECTIVE THAT
THOUGHT OR MORE EXPENSIVE THAN
THOUGHT. WE CAN MAKE UP FOR IT
WITH OTHER ELEMENTS OF THE OF
THE PROGRAM THAT'S IN THE
SCOPING PLAN AND SO
THAT'S ACTUALLY TRADE PROGRAM.
A FLEET OF BOTH HELP US
STRENGTHEN OUR STATES RESILIENCE
AND ALSO ACHIEVE OTHER IMPORTANT
SOCIAL GOALS. AND SO IS THIS
REQUIRES OF INCA A TREMENDOUS
AMOUNT OF LISTENING.
EITHER TO THE PEOPLE WHO HAVE
TO IMPLEMENT ALL THESE RULES
THAT THE PEOPLE WHO ARE
REGULATED BY US.
AND BY ALL OF THE OTHER AS
STAKEHOLDERS TO WANT TO HELP US.
ACHIEVE OUR OUR LEADERSHIP SO
WITH THAT I THANK YOU PANDA
MEASURE ANSWER QUESTIONS.
A. S. YOU YOU KNOW WE HAD
EXTENSIVE COMMENTS WHEN WE HELD
THE HEARING ON THREE NINE. EIGHT
SIX ONE SEVEN OF BEFORE THIS
COMMITTEE AND AND A
UNFORTUNATELY WERE UNABLE TO.
MAKE AMENDMENTS TO THE
LEGISLATION THAT WE THOUGHT
WOULD BE.
BASELINE CORRECTIVE JUST A
CLARIFICATION OF WHAT WE THOUGHT
THAT THE AUTHOR OF MEANT SO I
HOPE THAT YOUR STAFF.
YOU KNOW THE.
THERE'S ALWAYS SAID DO WE DO
WITH STATUTORY EARLIER DURING
THE WITH TO REGULATIONS SO AM I
WOULD HOPE THAT AS YOU GO
THROUGH THOSE THINGS THAT YOU
ONCE AGAIN HAVE STAFF LOOK AT
THE COMMENTS THAT WE MADE. WORK
JUST TO.
MAKE SURE THAT WE KNOW WE'RE ALL
TALKING ABOUT IT HAS.
SOME OF THE LANGUAGES
WAS UNCLEAR ON.
VERY GOOD TIME STILL FOR THE
PEOPLE WHO AREN'T A. FAMILIAR
WITH IF WE WE SENT OUT A SERIES
OF QUESTIONS.
BECAUSE WERE YOU KNOW JUST.
TRYING TO.
AND CLEAN THE BEST INFORMATION
FROM THE SCOPING PLAN AND TRY TO
LEARN FROM.
WHETHER WE ON THE ROAD TO
SUCCESS OR ROAD FOR AND
UNCERTAINTY R. RELATIVE.
AT TO FAILURE NUMB AND I GUESS
THEY WANT THE FIRST QUESTION IS
IT WOULD IT WERE WORRIED ABOUT
THE POSSIBILITY A FIFTY
EMISSIONS ACT CUTS.
ARE FRONT LOADED THEN THE STATE
WOULD MEET THE SCOPING PLANS
CUMULATIVE REDUCTION METRICS
BUT FAIL TO MEET THIS US SENATE
BILL THIRTY TWO STATUTORY
TARGETS.
TWENTY THIRTY
THE RISK SEEMS MORE PRESSING
GIVING DID A ARBY'S RELIANCE ON
CAP AND TRADE IN THE LATE TWENTY
TWENTIES AT THE END OF THE.
.
PERIOD THE CALIFORNIA'S CAP
ENTRY PROGRAM FEATURES UNLIMITED
BAKING.
WHICH MAKES IT FUNDAMENTALLY A
CUMULATIVE POLLUTION CONTROL
INSTRUMENT RATHER THAN A PROGRAM
THAT SPECIFIES.
A REQUIRES ANY SPECIFIC ANNUAL
EMISSION LEVELS SO WE'VE GOT THE
CUMULATIVE IMPACT VERSUS THE
YEAR HERE SO WE'RE ASKING WHAT
MEASURES THIS A A RP HAVE IN
PLACE TO ENSURE THAT THESE.
ANNUAL EMISSIONS DECLINE.
SEVEN EIGHT TWENTY EIGHTEEN
TWENTY NINETEEN TWENTY TWENTY AT
MEET TO STAND UP BILL.
THIRTY TWO TARGETS AND CAN YOU
EX R. PROVIDE A.
.
AN EXPLICIT OUTLINE AND HOW AND
WHEN REGULAR REVIEWS WILL OCCUR
AND WHAT ACTIONS WILL BE TAKEN
IF THERE IS AN INDICATION THAT.
CALIFORNIA MAY NOT MEET THE
SENATE BILL THIRTY TWO TARGETS
WE'RE FAMILIAR WITH IN.
BUILT IN THE ENTERED A AB THREE
NINE EIGHT IS OFF RAMPS WERE
SPEED BUMPS WORK.
FOR PRESS CONTAINMENT WE DON'T
HAVE ON RAMPS.
OR IT SEEMS
TWO IF WERE IF IT LOOKS THAT
WE'RE NOT GONNA MAKE OUR TARGET
OTHER THEN.
INCREASING THE CAPS SO WE WERE
LOOKING FOR.
.
FEEDBACK AND WHAT CHERYL HAVE A
COUPLE THINGS FIRST OF ALL AS.
AS I SAID EARLIER WHERE.
IN THE PROCESS OF PROPOSING A
SEVEN AMENDMENTS TO.
THE CATHOLIC TRADE PROGRAM
WHICH I THINK WILL AB KICKIN AND
UP AT A POINT BEFORE ANY.
AS THAT.
HARMS THAT ARE.
POTENTIALLY THERE COULD BE.
COULD BE REALIZED AND WE DO
HAVE THE ABILITY TO MOVE
QUICKLY.
WHEN WHEN WE NEED TO.
THANKS TO.
ABILITY TO TO REGULATE.
MUCH MORE FLEXIBLY THAN SOME
ENTITIES TO BUT THE FACT IS THAT
IT'S A CAP AND TRADE IT IS A
MARKET BASED PROGRAM AND SO.
IT'S IMPORTANT THAT THE MARKET
HAVE A CERTAIN AMOUNT OF.
CERTAINTY THAT YOU'RE NOT GONNA
BE TWISTING THE RULES AROUND ON
A CONSTANT BASIS EITHER BECAUSE
THEN PEOPLE MODE INVEST
AND THEY WON'T PARTICIPATE THEY
SIMPLY THEY'LL THE COMPLY IF
THEY'RE SUBJECT TO THE RULE. BUT
THE WHOLE BENEFIT OF HAVING A
MARKET BASED PROGRAM WHICH IS
THAT OTHER PEOPLE GET TO CHOOSE
HOW TO COMPLY AND HAVE SOME
FLEXIBILITY. UP COULD BE LOST
WITHOUT SOME RECOGNITION OF THAT
OF THAT FACT THE THE FACT IS
THAT THE CASE THE CAP AND TRADE
PROGRAM DOES NOT INCLUDE
UNLIMITED AT BANKING. THERE IS A
HOLDING LIMIT REQUIREMENT UP
PEOPLE ARE NOT ALLOWED TO JUST
PILE UP.
YOU KNOW HORDES OF THE
ALLOWANCES THAT THEY'RE ACTUALLY
LIMITED IN HOW MANY THEY CAN
HAVE AN AS IT HAS ACTUALLY
TURNED OUT.
MOST BUSINESSES THAT ARE IN THE
PROGRAM HAVE CHOSEN NOT TO.
EVEN.
HORROR DOOR OR TRY TO PURCHASE
IN ADVANCE UP ALL THAT THEY
MIGHT NEED OR ALL THAT WOULD BE
SUBJECT TO THE HOLDING LIMIT SO
WE'RE KIND OF SUB BUT WE'RE
CRITICIZED FROM TWO DIRECTIONS.
EITHER THE PRICE IS TOO LOW AND.
IS TOO EASY TO COMPLY OR THE
PRICE IS TOO HIGH AND WE'VE MADE
IT.
TOO DIFFICULT TO COMPLY WHERE
EXACTLY IS THAT SWEET SPOT OUR
OUR JOB IS TO TRY TO FIGURE THAT
OUT AND TO KEEP LOOKING ON A
REGULAR BASIS. ONE OF THE THINGS
THAT WE CHOSE TO DO WAS TO OUR
SUDDEN PANIC YOU KNOW I
LOOK AROUND AND I DON'T HAVE
ENOUGH TO MEET MY LIMITS I'M IN
TROUBLE. AND ONE OF THE THINGS
THAT WE'VE BEEN I THINK MOST
PLEASED TO SEE IS THAT
CALIFORNIA BUSINESSES THAT ARE
SUBJECT TO THIS RULE HAD BEEN
VERY PRUDENT AND THOUGHTFUL
ABOUT HOW THEY'VE APPROACH THAT.
TASK NOW THE ONE OF THE RESULTS
OF THE WAY WE'VE IMPLEMENTED
THIS PROGRAM IS THAT.
IT HASN'T BEEN AS EXCITING ON
MARKET FOR OUTSIDE TRADERS AS
SOME HAD THOUGHT AT THE
BEGINNING.
THERE ARE THIRD PARTY TRADERS
THERE IS A MARKET FOR CALIFORNIA
EMISSIONS ALLOWANCES THAT. UP
FEATURES UP PEOPLE BEHIND THEM
WHO ARE NOT SUBJECT TO THE OF
REQUIREMENTS OF HOLDING
ALLOWANCES BUT IT'S NOT AS. BIG
A DEAL AS A PORK BELLIES YOU
KNOW THAT'S JUST THE WAY IT IS.
AND WE FELT THAT THAT WAS A OF
A GOOD TRADE OFF THAT THE
IMPORTANT THING FOR US
WAS TO BE ABLE TO DEMONSTRATE
TO.
OURSELVES TO YOU AND TO THE
WORLD THAT YOU COULD HAVE A A
PRICE ON CARBON YOU COULD ALLOW
FOR A MARKET TO EXIST BUT AT THE
SAME TIME.
YOU COULD ALSO ARM CONTINUE TO
MAKE PROGRESS IN A STEADY WAY
WITHOUT CAUSING MAJOR BACKLASH
R. REACTION.
FROM FROM THE REGULATED
COMMUNITY SO.
AGAIN AS WE MOVE FORWARD WE'VE
HEARD.
SUGGESTIONS FOR WAYS IN WHICH
WE COULD DO BETTER ON ANY OF
THESE FRONTS.
BUT WE DO HAVE TO MAKE SURE
THAT WE ALL UNDERSTAND WHAT THE
OBJECTIVES OF THE PROGRAM ARE.
WILL YOU IF TOUCHED ON.
POTENTIAL FOR PORTING IN THE
PRIVATE ACCOUNTS BUT WE HAVE
STATE ACCOUNTS
AND CRITICS HAVE ARGUED THAT THE
THE OVER ALLOCATION IN THE STATE
ACCOUNTS HAS THE.
SAME ORBIT SAME DETRIMENTAL
AFFECT BECAUSE THERE'S.
OUT WERE NOT.
WE'RE NOT.
ACHIEVING OUR GOALS ARE TO
REDUCE THE POLLUTION RIGHT NOT
TO HAVE TO CREATE MY THAT ARE
THE FOR THIS AUCTION I KNOW I
HAD A LOT OF PEOPLE WON'T SPEND
THE MONEY IN THE AUCTION AND I.
STEP TWO WILL DEAL WITH THAT BUT
BUT THE GOAL IS TO IS TO.
HAVE THE INDUSTRY'S TAKE THESE
ACTIONS TO REDUCE.
CORRECTIVE POLLUTION RIGHT YEAH
SO THEN YOU HAVE TO LOOK AT TWO
THINGS FIRST BILL YOU LOOK AT
THE MEASURED.
RESULTS OF THE OF OUR PROGRAMS
AND SEE WHETHER IN FACT WE ARE
CONTINUING TO REDUCE OVERALL
EMISSIONS AS A RESULT OF ARE.
MIX OF PROGRAMS AND THE ANSWER
TO THAT IS CLEARLY GAS AND WE'VE
PROVIDED YOU WITH THE INVENTORY
INFORMATION AND THE CHARTS THAT
SHOW THAT. COULD WE'D YOU'VE
MORE FASTER. PROBABLY WE CUT UP
AT AT GREATER. COST.
SO AGAIN DO WE WANT TO. TRY TO
GO FOR A CARBON PRICE THAT'S
HIGH JUST BECAUSE THAT IT IN OF
ITSELF WILL SEND THE MESSAGE
THAT CARBON IS REALLY BAD STUFF
AND PEOPLE SHOULD BE DOING MORE.
OF OR DO WE WANT TO TRY TO SET A
PRICE IT'S ENOUGH TO MAKE PEOPLE
THINK.
AND SO FAR THE EVIDENCE THAT WE
HAVE IN TERMS OF COMPLIANCE
ENTITIES IS. PEOPLE ARE THINKING
ABOUT CARBON AND FACTORING IT
INTO THEIR DECISION MAKING WHEN
THEY DECIDE TO UPGRADE EQUIPMENT
TO BUILD NEW PLANTS TO EXPAND
OPERATIONS YOU KNOW WHAT I THEY
DID HOW'RE BUSINESSES ACTUALLY
RESPONDING. TO THE EXISTENCE OF
THE CAP AND TRADE PROGRAM WELL
IT'S NOT THE MOST IMPORTANT
FACTOR IN THEIR HINKING OVERALL
LEAP I THINK W KNOW FROM OTHER
EVIDENCE THAT WHEN PEOPLE ARE
THINKING ABOUT LOCATING IN
CALIFORNIA ARE. EXPANDING IN
CALIFORNIA THEY'RE LOOKING AT
HOUSING COSTS THEY'RE LOOKING AT
SCHOOLS ROADS AND ALL THOSE
OTHER THINGS AT THE SAME TIME WE
DO KNOW THAT PARTICULARLY FOR
INDUSTRIES THAT ARE FUEL
INTENSIVE. IT'S A IT'S A BIG
FACTOR AND IN THE CASE OF THE
UTILITY INDUSTRY.
THEY'VE MOVED VERY SWIFTLY IN
AND COMPLIANCE NOW THEY'RE
SUBJECT OTHER REQUIREMENTS DO
THEY HAVE OTHER YOU KNOW
RENEWABLE PORTFOLIO STANDARD
REQUIREMENTS AS WELL. BUT THE
FACT IS THAT THEY HAVE CHOSEN TO
MOVE FASTER THAN THEY WOULD HAVE
BEEN REQUIRED TO OTHERWISE AND
THAT'S A HUGE.
BENEFIT TO ALL OF US THAT LEAVE
THAT WE'VE MOVED AHEAD IN IN
THAT WAY. AS FAR AS WHAT THE
STATE IS DOING ABOUT THE FACT
THAT THEIR ALLOWANCES OUT THERE
WELL IN THE LAST AUCTIONS OF
COURSE WE'VE SOLD ALL OF THE
CURRENT AND FORMER AND A FUTURE.
ALLOWANCES THAT WERE OFFERED
FOR SALE SO WE CAN SEE THAT.
COMPANIES ARE.
BETTING THAT THIS PROGRAM IS
GOING TO BE AROUND AND THEY'RE
THEY'RE LOOKING TO FILL UP THEIR
THEIR COFFERS AS AS THEY CANCEL
THEY'LL BE ABLE TO BE IN
COMPLIANCE.
BUT.
WE CAN SEE THAT ARM IN PAST
ACTIONS WE DIDN'T SELL ALL OF
THE ALLOWANCES SO THERE IS A
RESERVE OF ALLOWANCES CLOSE TO
IT LET'S SUSPEND THE
WHOLE PROGRAM. BECAUSE THAT HAS
RIPPLE EFFECTS IN THE MARKET
THAT ARE HIGHLY UNDESIRABLE.
THE WHAT YOU WOULD DO IS YOU
WOULD RELEASE SOME OF THE
AUCTION SOME OF THE ALLOWANCES
THAT THE STATE HOLES. INTO THE
MARKETPLACE AND THAT WOULD HAVE
THE EFFECT THAT OF BRINGING
DOWN.
THE PRICE BECAUSE THE THERE'D
BE MORE AVAILABLE.
BUT WE'VE WE'VE BEEN NEAR THE
BOTTOM I GUESS IF THE BOTTOM IS
FOURTEEN SEVENTY SIX AT THE LA
LAKERS AUCTION IN NOVEMBER AND
THAT CAP IS.
STEVE LET'S JUST SAY AROUND
SIXTY SO DO YOU SEE IF THIS WERE
TO EVOLVE IS IT A CREEP THAT WE
SEE IT HITS TWENTY HITS TWENTY.
FIVE WHICH SOME PEOPLE INCLUDING
THE CHAIR HERE WOULD NOT BE.
STARTLED WHEN HOME OR IS IT JUST
GO BOOM THIS THE SEVENTY OR TO
SIXTY THAT POPS THROUGH AN
OFFICE AND PEOPLE ARE SCRAMBLING
TO FIGURE OUT. WHERE THEY GO TO
GET THE ALLOWANCES WELL AT AT
THIS POINT WE HAVE NO REASON TO
THINK THAT THERE'S GOING TO BE A
SUDDEN BROWN ON THE MARKET OR A
PANIC?
?
AND. WE CERTAINLY ARE LOOKING
CONSTANTLY TO SEE WHAT'S GOING
ON I MEAN THAT WE HAVE THESE AT
QUARTERLY AUCTIONS AND AGAIN
THERE ARE PEOPLE WHO THINK WE
SHOULD DO THEM. MORE OFTEN UP
PARTLY FOR THAT REASON FOR THESE
THAT YOU'VE STATED BUT ASSUMING
THAT QUARTERLY IS SUFFICIENT
pALL THAT EXCITED OR EXCITING.
THEN I THINK WE WILL KNOW
PRETTY QUICKLY IF THINGS ARE
STARTING TO BE A PROBLEM NOT TO
MENTION THAT.
COMPANIES THAT ARE CALIFORNIA AT
COMPANIES THAT ACTUALLY SUBJECT
TO THESE REGULATIONS WILL TELL
US IF THEY THINK THERE'S A
PROBLEM BREWING. AND WILL BE IN
A POSITION TO TAKE SOME KIND OF
ACTION.
OF.
TO BROWN FROM THE LEGISLATIVE
ANALYST'S OFFICE
WOULD YOUR COMMENTS ON.
.
OUR FIRST QUESTION ON THE OVER
ALLOCATION.
THANK YOU MISTER CHAIR ROSS
BROWN WITH THE LA OWING AND
COMMITTEE MEMBERS.
I THINK WE TOUCHED ON THIS
ISSUE AND A RECENT REPORTS THAT
WE RELEASED IN DECEMBER.
I APOLOGIZE IF KIND OF GIVEN A
PRESENTATION OF THAT REPORT.
TO SOME OF THE COMMITTEE
MEMBERS ALREADY.
BUT ONE OF THE THE SECTIONS OF
THAT REPORT TOUCHES ON KIND OF
THIS ISSUE OF OVERSUPPLY IN THE
EARLIER YEARS AND BANKING AND
SOME OF THE POTENTIAL EFFECTS
SO.
I THINK MAYBE APPOINT YOU TEAR
IT TO THAT CHART OUT ONE OF THE
CHARTS IN THERE THAT KIND OF
TRIES TO HELP ILLUSTRATE. HOW
THE ISSUE I THINK THAT THE CHAIR
HAS ALREADY ADDRESSED IN THIS
KIND OF THE SUBJECT OF?
OF OF THIS QUESTION TO SOME
EXTENT SO THAT'S ON PAGE.
PAGE AIDS OF OUR REPORT.
AND JUST AS A A LITTLE BIT OF
BACKGROUND BEFORE YOU GET INTO
THE COMMON ON THAT QUESTION.
THIS REPORT WAS REALLY SORT OF
ISSUED IN RESPONSE TO THE
ADOPTION OF AB THREE NINETY
EIGHT AND THE EXTENSION OF THE
CAP AND TRADE PROGRAM. AND AS
AS.
THE GOAL IS TO PROVIDE A SORT A
TOOL TO HELP THE LEGISLATURE IN
OVERSEEN CARBS IMPLEMENTATION OF
THE DIRECTION THAT WAS PROVIDED
IN THAT BILL AND SO WE TRY TO
IDENTIFY A VARIETY OF WHAT WE
THINK ARE IMPORTANT.
IMPLEMENTATION IN DESIGN
DECISIONS.
THAT CARD HAS IN FRONT OF THAT.
AND IN IN THE NEXT YEAR OR SO
IN ADOPTING THE REGULATION AND
TRY TO HIGHLIGHT SOME OF THOSE
KEY DECISIONS THE POTENTIAL
EFFECTS ON PROGRAM OUTCOMES.
BUT THE LEGISLATURE EVALUATE
WHETHER THOSE DECISIONS THAT
THEY'RE PROPOSING OR MAKING. ARE
CONSISTENT WITH THE
LEGISLATURE'S PRIORITY IN
DIRECTION SO ONE OF THOSE WAS
RELATED TO THE ISSUE OF OVER
ALLOCATION AND BANKING WHICH.
AB THREE NINETY EIGHT PROVIDED
DIRECTION TO CARVE TO.
ASSESSED THAT ISSUE AND SAID IN
THE POST TWENTY TWENTY CAPS.
YOU'LL SEE THE FIGURE ON PAGE
THREE.
ARE EXCUSE ME ON PAGE EIGHT
FIGURE THREE ON PAGE EIGHT.
ILLUSTRATES KIND OF THIS THIS
TENSION BETWEEN.
THE CUMULATIVE EMISSION
REDUCTIONS THERE.
THAT MIGHT OCCUR THROUGH THE
PROGRAM THANK YOU MOVE EMISSIONS
THAT ARE ALLOWED BY ALLOWING
BANKING IN THE PROGRAM AND THE
ANNUAL TARGET THAT S. B. THIRTY
TWO SUCH OUT.
IN IN LEGISLATION AND SO WITH
THE CURRENT STRUCTURE OF THE
PROGRAM HOW THERE IS THIS
POTENTIAL TO KIND OF.
SHIFT ALLOWANCES FROM EARLIER
YEARS WHEN COMPANIES ARE OVER
COMPLYING OR EMISSIONS ARE BELOW
THE ANNUAL CAPS AND USE THEM IN
LATER YEARS TO COMPLY AND THE
PROGRAM AND THEREFORE. WHILE THE
ACCUMULATIVE CAPS MIGHT BE MATT
THE ANNUAL TARGET AND TWENTY
THIRTY.
MIGHT BE EXCEEDED BY USING SOME
BANK ALLOWANCES FROM EARLIER
YEARS IN THE PROGRAM IN THE
LATER YEARS.
.
WE THINK THIS IS.
ACE THAT POTENTIALLY
SIGNIFICANT. ISSUE.
THE EXAMPLE THAT WE LAY OUT
HERE PROVIDES KIND OF AN EXAMPLE
EMISSIONS SCENARIO SO MAYBE JUST
TO WALK YOU THROUGH THE CHART.
AND A LITTLE BIT MORE DETAIL.
THE LIGHT PURPLE LINE THAT WE
HAVE ON THAT CHART IS REALLY
SORT OF THE CAPS THAT ARE LAID
OUT IN THE CURRENT REGULATION.
AND YOU'LL SO SIR YOU'LL SEE
THOSE CAPS DECLINING MORE
STEEPLY OVER TIME AS WE REACH
THE TWENTY THIRTY ONE AT.
THE RED LINE IN THE CHART AND I
APOLOGIZE JUST TO.
STOP MY COMMENTS WILL QUICKLY
DOES EVERYBODY HAVE A COPY OF
THE REPORT IN THAT PACKET.
OKAY.
IF NOT I HAVE EXTRA COPIES
AROUND.
AND SO.
V. HAD YOU CAN SEE THE DECLINE
THE CAPS DECLINED STEEPLY OVER
TIME. THE.
REDLINE IN THE CHART IS AN
EXAMPLE EMISSIONS SCENARIO THAT
WE LAID OUT WHERE A MISSIONS
DECLINED STEADILY OVER TIME I AS
A RESULT OF EITHER ECONOMIC
CONDITIONS TECHNOLOGICAL
ADVANCEMENTS THE AFFECTS OF
OTHER. POLICIES THAT ARE IN
PLACE THAT ARE KIND OF
CONTINUING TO DRIVE EMISSIONS
DOWN. BUT IT'S STILL FIND
YOURSELF IN A POINT IN TWENTY
THIRTY WHERE A MISSION
SIGNIFICANTLY EXCEED.
THE ACTUAL TWENTY THIRTY TARGET.
THAT'S LAID OUT AND THAT'S
BECAUSE THERE'S A SET OUT THE
SEXUAL ALLOWANCES THAT CAN BE
USED IN THE EARLIER YEARS OF THE
PROGRAM AND BANKS AND.
AND USE TO COMPLY IN THE LATER
YEARS OF THE PROGRAM. THAT WE
THINK IS THAT A SIGNIFICANT
ISSUE FOR CONTINUE LEGISLATIVE
OVERSIGHT.
AS AS THE CARBS R. DEVELOPS ITS
REGULATION.
THE.
.
MY QUESTIONS AROUND KIND OF WHAT
WHAT'S THE SIGNIFIER HOW
POTENTIALLY SIGNIFICANT COULD
THIS.
AFFECT BE WHAT TYPES OF OPTIONS
ARE THERE TO POTENTIALLY ADDRESS
THIS.
SOME OF THE OPTIONS THAT. WE
HAVE THOUGHT ABOUT OR DISCUSSED
IN OUR REPORT ARE MAKING SOME
ADJUSTMENTS TO THE POST TWENTY
TWENTY CAPS IN ORDER TO.
KIND OF THE A POTENTIALLY
ADDRESS THIS THIS RISK IT'S OUT
THERE.
THAT MEANS POTENTIALLY REMOVING
SOME ALLOWANCES FROM THE REGULAR
AUCTIONS
ANOTHER KIND OF MIDDLE GROUND
OPTION WOULD BE TAKING SOME OF
THE ALLOWANCES THAT ARE IN THE
RIGHT WOULD BE IN THE REGULAR
AUCTIONS.
PUTTING THEM INTO SPEED BUMPS R.
THAT'S KIND OF ANOTHER MIDDLE
GROUND IN THE SPEED BUMPS
ANOTHER FEATURE THAT WAS ADOPTED
IN IN AB THREE NINETY EIGHT.
.
PROPS JUST AS IMPORTANT AS.
AS ANY OF THESE POTENTIAL
CHANGES IN THE ANALYSIS IS JUST
MAKING SURE THAT.
ARE THE DIRECTION FROM THE STATE
IS CLEAR ON IF THIS ISSUE. AYE
IS DETERMINED TO BE SIGNIFICANT
EITHER NOW OR IN THE FUTURE.
WHAT POTENTIAL ADJUSTMENTS THE
STATE WOULD MAKE IN THAT CASE WE
THINK THAT'S KIND OF AN
IMPORTANT THING AND?
TO PROVIDE TO THE MARKET TO
PROVIDE THE MARKET SOME
CERTAINTY ABOUT. AYE IF IT'S
DETERMINED TO BE AN ISSUE. OUT
WHAT TYPES OF ADJUSTMENTS THE
STATE MIGHT MAKE SO THE MARKET
CAN.
GONNA FOR SEE THOSE CHANGES AND
MAKE.
A SMART INVESTMENT DECISIONS
BASED ON. THAT THEM THE MAGIC
TIME HERE'S TWENTY TWENTY THREE
AT LEAST ON THE CHART ON.
FIGURE THREE SHOULDN'T WE BE
DOING THE THE MODELING
BEFOREHAND BEFORE WE WAIT TO
TWENTY TWENTY THREE AND WE SAY
WE DO WHERE.
CALCULATION WE SAY ó WE HAVE
A GUN TO RECESSION WE HAVE ALL
THESE OTHER EXTERNALITY SEVEN
OCCURRED IN MY DIED WE KNOCKED
WE GOTTA HAVE A PAPER SUCCESS.
YEAH. I MEAN WE WE THINK THE
DEATH THERE THERE THERE SHOULD
BE A LOT OF SORT OF
INVESTIGATION INTO SOME OF THE A
DIFFERENT EMISSIONS SCENARIOS.
THAT COULD OCCUR OUT TO TWENTY
THIRTY THIS IS JUST ONE. EXAMPLE
OF THEIR A LOT OF OTHER
SCENARIOS THAT COULD OCCUR THE
KIND OF THE SLOPE OF THE LINE
COULD BE MUCH DIFFERENT. YOU
KNOW IT COULD BE HIGHER IN SOME
YEARS AND LOWER AND OTHER YEAR
SO IT WILL ALL ABLE CERTAINLY BE
DIFFERENT IN THIS EXACT LINE BY
EXPLORING. WHAT THOSE DIFFERENT
EMISSIONS SCENARIOS ARE WHAT
TYPES OF THE FACTS THEY MIGHT
HAVE ON THIS PARTICULAR ISSUE IN
THE LEVEL OF BANKING AND THE
NUMBER OF ALLOWANCES THAT ARE
AVAILABLE IN LATER YEARS?
ISN'T IT WE THINK IS SORT
IMPORTANT PART OF THE PROCESS OF
INVESTIGATING OR NOT THIS IS
LIKELY TO BE A SIGNIFICANT ISSUE
OR NOT AND IF IT IS. WHAT TYPES
OF OF OF CHANGES?
THE STATE MIGHT WANT TO MAKE
OUR I'D WANTED TO NOTE ONE THING
IN THIS WAS MENTIONED BY THE
CHAIR THIS THIS TRADE OFF
ASSOCIATED WITH.
I EMISSIONS REDUCTIONS AND COSTS
AND IT'S A IT IS A VERY CLEAR
TRADE OFF I THINK. I'LL AND SNOW
WITH ADJUSTMENTS ARE MADE TO
REDUCE THE SUPPLY OF ALLOWANCES
IN THE FUTURE IT DOES PUT UPWARD
PRESSURE ON PRICES AND BETTER. A
CLEAR TRADE OFF I THINK FROM OUR
VIEW. THAT THE PRIMARY GOAL IN
SORT SETTING THE CAPS IN ISSUE
IN THE NUMBER OF ALLOWANCES THE
PRIMARY FOCUS.
SHOULD BE ON THE STATE'S
GREENHOUSE GAS GOALS AND WHAT.
STRUCTURE OF THE PROGRAM WHAT
LEVEL OF ALLOWANCES ISSUED IS
CONSISTENT WITH THE AMBITION OF
THOSE GOALS AND WHAT'S LIKELY
GOING TO HELP THE STATE MEET
THOSE GOALS.
QUESTIONS OR CONCERNS AROUND
PRICES AND COSTS ARE VERY VALID
AND THEY SHOULD CERTAINLY BE
CONSIDERED. THERE ARE OTHER
TOOLS IN THE PROGRAM AB THREE
NINETY EIGHTS DIRECTOR CARP TO
IMPLEMENT A PRICE CEILING. PRICE
SPEED BUMPS WE THINK.
WE THINK THOSE.
TOOLS ARE LIKELY MORE EFFECTIVE
TOOLS TO TRY AND TARGET THAT
PARTICULAR ISSUE AND MITIGATE
CONCERNS
AROUND COSTS AND.
AND PRICES AND SO WE THINK THE
STATE SHOULD KIND OF LOOK TO
THOSE THOSE DECISIONS AS SORT OF
THE THE PRIMARY TOOL TO HELP
MITIGATE COSTS WHILE. OUT
FOCUSING ON SORT QUESTIONS
AROUND THEIR SUPPLY OF
ALLOWANCES AND POST TWENTY
TWENTY CAPS BUT DO NOT KNOW WHAT
WHAT WHAT MIGHT BE NECESSARY TO
MEET THE STATE'S TWENTY THIRTY
GOALS.
I JUST WANNA ADD ONE THING ABOUT
THE.
THE ADMISSIONS.
TRAJECTORY AND THAT IS BECAUSE
I DON'T THINK WE'VE DONE AS GOOD
A JOB OF COMMUNICATING AS WE
SHOULD ON THIS EITHER.
IN TERMS OF.
FRONT LOADING EMISSIONS
REDUCTIONS.
OUR GREATEST OPPORTUNITIES ARE
REALLY IN THE AREA OF THE SHORT
LIVED CLIMATE POLLUTANTS
INCLUDING METHANE AND BLACK
CARBON AND WE HAVEN'T DONE AS
GOOD A JOB OF FACTORING THAT.
PROCESS INTO THE OVERALL
TRAJECTORY OF EMISSIONS
REDUCTIONS AS I THINK WE COULD.
THAT WE DO HAVE OTHER
LEGISLATION WHICH WE WERE
DIRECTLY.
TALKING ABOUT HERE TODAY BUT WE
WERE DIRECTED TO DEVELOP A SHORT
LIVED CLIMATE.
POLLUTION REDUCTION PROGRAM
THERE SOME VERY.
PROGRESSIVE.
IDEAS THAT ARE INCLUDED IN THE
PLAN THAT WE'VE DEVELOPED AND
MONEY THAT YOU AND AND THAT HAVE
HAVE PUT INTO.
THINGS LIKE.
MASSIVE.
IT MOVED TOWARDS CAPTURING
METHANE FROM DAIRY IS AN FROM
LEAKS IN THE SYSTEM OF
TRANSMITTING.
GAS AND OIL AROUND THE STATE
AND.
OTHER SOURCES OF LANDFILL GASES
IT CETERA AND WE TEND TO SORT
OF.
THINK OF THOSE IS IN A
COMPLETELY SEPARATE CATEGORY
BECAUSE THEY ARE NOT QUITE AS
EASILY.
.
I HAD A FACTORED INTO.
THAT OVERALL CAP AND TRADE
PROGRAM BUT THEY'RE STILL
REGULATORY MEASURES THAT WE ARE.
PURSUING AS WELL AS AN
INCENTIVE MEASURES AND WE SHOULD
BE.
OTHER UNDERSTANDING I THINK
THAT OUR BEST CHANCE OF AVOIDING
LATER YEAR PROBLEMS IF EMISSIONS
IF THE PRICE OF CO TWO DOES GET
SO HIGH THAT IT. HAS THE.
POTENTIAL TO NOT BE.
ATTRACTIVE ANYMORE EFFORT FOR
THE STATE IS REALLY CAPTURING
THESE EARLIER REDUCTIONS THAT WE
CAN GET FROM THESE OTHER. OF
COMPOUNDS THAT ARE AS THAT ARE A
PROBLEM AND.
AND ARE AVAILABLE THAT ARE OUT
THERE TO BE REDUCE
EVEN IDEA ON THIS RENEWABLE
NATURAL GAS IDEAS ABOUT THINGS
WHAT THAT DOES WHAT THE NUMBERS
COULD BE IS THAT.
ONE PERCENT OR TWO PERCENT OR.
THE REPLACEMENT OF THE NATURAL
OUR HOW MUCH OF IT COULD BE
REPLACED BY RENEWABLE.
LAST TIME PERIOD YEAH I I HAVE
SEEN PROJECTIONS OF THAT BUT I
DON'T HAVE A.
FIRM NUMBER TO GET YOU.
MISTRUST CAN
AND MISTER BROWN.
YOU LIKE CONTINUE ON THE PERSON.
I MEAN I I THINK THAT COME TO
COVERS MOST OF OUR COMMENTS I
MEAN. I'D I TOUCH BRIEFLY ON THE
AND THE PRICE CEILING NOTICED.
MAYBE SORT OF WRAP UP THAT
COMMENT I MEAN I THINK WE
HIGHLIGHTED THAT AGAIN AS AS
ANOTHER IMPORTANT.
DESIGN FEATURE IN THE PROGRAM
WHICH.
CAN POTENTIALLY CONTROL IT IS
SORT OF SITS IN IT IN THE
PROGRAM IN ORDER TO CONTROL
COSTS AND ENSURE THAT THEY DON'T
EXCEED SOME SPECIFIED. OUT LEVEL
THAT THAT THE STATE DETERMINES
TO BE TOO HIGH AND SO.
AB THREE NINETY EIGHT PROVIDE
SOME DIRECTION THE CARBON WHERE
TO SET THAT PRICE CEILING BUT WE
THINK THAT'S.
AN IMPORTANT DECISION AND
THERE'S STILL QUITE A BIT OF
DIRECTION OUR DISCRETION THAT
CARP HOUSE AND SORT OF WHERE TO
SET THAT LEVEL ON HOW TO
BALANCE.
BOTH COST CONTAINMENT AND A
EMISSIONS CERTAINTY BECAUSE IF
PRICES DO REACH THAT LEVEL. BúN
ARE THE STATE WOULD BE ISSUING
MORE ALLOWANCES AND THEREFORE
WOULDN'T.
YOU OVERALL EMISSIONS WOULD
EXCEED THE CAPTAIN SO THAT'S
KIND OF A A CLEAR TRADE OFTEN
SEVEN SEVEN THAT LEVEL I THINK
THAT'S ANOTHER AREA THAT THE
LEGISLATURE SHOULD CONTINUE TO.
CONDUCT OVERSIGHT ON AND ENSURE
THAT OUR CAR BIZ IS BALANCING.
THOSE TO TRADE OFFS IN A WAY
THAT IS CONSISTENT WITH THE
LEGISLATURE'S PRIORITIES.
I'VE BEEN GETTING CULT DANNY
CULLIMORE YOU HAVE BEEN.
.
NAME BY THE SENATE RULES
COMMITTEE AS OUR REPRESENTATIVE
ON THIS TECHNICAL ADVISORY
COMMITTEE AND I GREENHOUSE GASES
DO YOU HAVE.
.
A COMMENT ON THE SPECIFIC ANNUAL
EMISSIONS FIRST THE CUMULATIVE.
SURE THANK YOU MISTER CHAIRMAN
AND MEMBERS OF THE COMMITTEE I
APPRECIATE THE OPPORTUNITY TO BE
HERE.
YOU KNOW I THINK THE DISCUSSION
WE WE JUST HEARD I THINK
EXEMPLIFIES SOME OF THE
COMPLEXITIES AROUND THINKING
THROUGH. THE DESIGN OF THE CAP
AND TRADE PROGRAM AND ITS
RELATIONSHIP TO THIS ANNUAL
TARGETS SET BY S. B. THIRTY TWO.
I THINK IT'S IT'S ALSO VERY
IMPORTANT TO OBSERVE.
IN THE CHAIRS EXCELLENT WORK
AND THIS IS A VERY COMPLICATED
ISSUE WHERE ONE HAS TO BALANCE
ALL THESE COMPETING FORCES.
BOB I THINK
THAT BEING SAID THE CAPTAIN
TRADE PROGRAM IS THE SINGLE
LARGEST MEASURE IDENTIFIED IN
THE SCOPING PLAN IT CONSTITUTES.
THIRTY EIGHT PERCENT IT THE
CUMULATIVE REDUCTIONS THE BOARD
CALLS FOR OVER THE NEXT DECADE
AND A LITTLE BIT OVER FORTY SIX
PERCENT I WANT TO SAY IN THE
ANNUAL YEAR OF TWENTY THIRTY.
AFTER THAT JUST
MOST BASIC PRECISE POINT
ESTIMATE THE BOARD OFFERS.
THE SINGLE BIGGEST COMPONENT
ALTHOUGH OF COURSE OTHER
MEASURES LIKE THE SHORT LIVED
CLIMATE POLLUTANTS ADOPTION
STRATEGY A VERY IMPORTANT SWELL.
NOW THE REASON THIS IS IMPORTANT
WITH RESPECT YOUR QUESTION ABOUT
THE CUMULATIVE VERSES ANNUAL
REDUCTIONS.
IS THE PLAN DOESN'T ACTUALLY
ANALYZE ANY OF THESE QUESTIONS
IT'S ESSENTIALLY SILENT ON THE
ISSUE OF HOW THE CAPITA TRADE
PROGRAM WOULD PERFORM. AND UNDER
WHAT CONDITIONS A MIGHT DELIVER
THE REDUCTIONS THAT ARE CALLED
FOR.
I WOULD BE CLEAR THAT.
AB THREE NINETY EIGHT REQUIRED
THE BOARD TO FINISH THE SCOPING
PLAN IN DECEMBER OF LAST YEAR.
BEFORE THE REFORMS THAT WILL BE
UNDERWAY AND ARE UNDERWAY AT THE
BOARD CONCERNING THE
MODIFICATIONS CAP AND TRADE
PROGRAM DESIGN ARE THE POINT
WHERE THERE'S ANY PUBLIC
DOCUMENTATION AROUND THAT.
NEVER THE LESS THE KINDS OF
ISSUES THE DOCTOR BROWN TALKED
ABOUT THE NATURE OF THE CURRENT
OVER ALLOCATION AND
THE PROGRAM AND THE POTENTIAL
FOR THOSE EXTRA ALLOWANCES TO BE
USED IN THE FUTURE. TO GO
THROUGH OUR EMISSIONS CAPS IN
FUTURE YEARS AS WE QUICKLY GET
CLOSE TO TWENTY THIRTY. AMP
THAT'S A FACTUAL CONDITION RIGHT
NOW.
AS AN EXAMPLE THE TWENTY SIXTEEN
DATA THE CAPS WERE SET SIXTY
MILLION TONS BY FIFTY EIGHT
MILLION TONS HIGHER THAN
EMISSIONS TURNED OUT TO BE IN
THAT YEAR.
THE CAPS UPSET BEEN SET MUCH
MORE GENEROUSLY THAN EMISSIONS
SO FAR. BUT OF COURSE THEY WILL
DECLINE AND THEY WILL BE CAUSING
REDUCTIONS
FUTUREAND ONE OF THE BIG
QUESTIONS IS HOW WILL THESE NINE
AM EX PLAY OUT.
ARE AND THEN AS WE MOVE TO
MODIFYTHE MARKET INCLUDE THESE
ISSUES LIKE HARD PRICE CEILING
AND THESE PRICE CONTAINMENT
POINTS THAT INTRODUCED EXTRA
ALLOWANCES INTO THE PROGRAM.
HOW'S THE PROGRAM IN A DELIVER
ON THE MISSION REDUCTIONS THAT
ARE CALLED FOR THE CABBAGE
ANSWERING THE SCOPE AND PLAN.
THERE'S NOT ANY INFORMATION ON
THE SCOPE AND PLAN.
YET I HOPE THAT WILL BE
FORTHCOMING AS PART OF THE
BALANCING THAT OF COURSE THE
BOARD. IS IS VERY GOOD AT AND
IT'S IN THE MIDDLE OF WRITING IS
REALLY IMPORTANT NOTICE THAT THE
SCOPE AND PLAN ITSELF DOES NOT
INDICATE ANY OF THE ANALYSIS
BEHIND HOW THE THE KAPPA TRADE
PROGRAM WILL GET. WITH THE PLAN
WANTED TO GO.
WE ARE IN THIS LITTLE HYBRID
AREA BECAUSE WE'RE AT THE THE
THREE YEARS AT THE END OF AB%
THIRTY TWO WHEN WE'RE MAKING
THESE.
PROPOSED REGULATIONS WHICH WILL
AFFECT HOW WE OPERATE IN TWENTY
TWENTY ONE AM.
WHAT SAY THE REST NICHOLS ABOUT
THE THE THE DATA AT THE
INFORMATION THAT MAY BE
AVAILABLE FOR THIRD PARTIES AND
FOR LEGISLATIVE ANALYSIS AND?
RUSSABOUT.
SEEING IF WE.
IF WERE ONBOARD.
UP TURN I CAN'T GIVE YOU THE
DATE AT THE MOMENT BUT I KNOW
THAT SOMETIME THIS SPRING.
WE ARE PLANNING ON PUTTING OUT
A PROPOSAL THAT WILL INCLUDE
ESSENTIALLY THE AN ANALYSIS THAT
THAT IS THAT WE ALL WOULD LIKE
TO SEE IN TERMS OF WHAT'S LIKELY
TO HAPPEN AND WHAT WE THINK IS
GOING TO HAPPEN.
IT'S GONNA BE AS PART OF THE AS
AS PART OF THE REGULATORY
PROPOSAL SO. REAL YOU'LL BE
AMONG THE FIRST TO HEAR WHAT THE
WHAT WE'VE BEEN ABLE TO COME UP
WITH. I'M NOT SURE THAT WILL
SATISFY EVERYONE THAT WE'VE AT
ANSWERED EVERY QUESTION THAT
THEY HAD BUT WE'RE CERTAINLY
GONNA. DO OUR BEST TO TAKE IN
ALL THE DATA AND USE WHATEVER
TOOLS ARE ARE AVAILABLE TO US IS
SECONDED INCLUDE A RETROSPECTIVE
ON THE INITIAL SCOPING PLANT
BECAUSE SOME OF THAT THE
MODELING IN THE ASSUMPTIONS THAT
WERE MADE. YOU KNOW WE WE MADE
IT WE SORT OF YEAH JACK
CAVALLERIA YOU SAY WE'RE GOING
TO MEET OUR AB THIRTY TWO GOALS
THEM WHEN WE LOOK BACK ON WHAT
YOU THOUGHT. BLANK PUTTING
TOGETHER THIS THE FIRST AND.
IN ITS EXISTENCE MODELING FOR
HEAD AND LETTERS SCOPE WAS COULD
BE WHAT HAPPENED AND WHAT WENT
RIGHT WHAT WENT WRONG AND HOW WE
HAVE THE TOOLS OR IF YOU NEEDED
TO YEAH I I THINK THAT'S ALWAYS
IMPORTANT ONE OF THE THINGS I'VE
LEARNED OVER. A A LOT OF YEARS
NOW IN THIS ENVIRONMENTAL
REGULATORY WORLD IS THAT. A
OFTENTIMES THE REASON WHY WE
SUCCEED IS VERY DIFFERENT FROM
WHAT WE THOUGHT IN THE BEGINNING
A CLASSIC EXAMPLE ON THIS ONE
HAS BEEN STUDIED AND WRITTEN
ABOUT A LOT.
IS THE ACID RAIN TRADING
PROGRAM WHERE AT THE TIME WHEN
THE FEDERAL CLEAN AIR ACT
INCLUDED THE VERY FIRST CAP AND
TRADE PROGRAM. EVERYONE'S
ASSUMPTION INCLUDING MANY PEOPLE
WHO ARE INVESTING IN COMPANIES
THAT BUILT THIS TECHNOLOGY WAS
THAT THE POWER PLANTS THAT WERE
SUBJECT TO IT WE'RE GONNA PUT ON
SCRUBBING EQUIPMENT TO GET RID
OF THE SULFUR THAT'S THE. MAJOR
CAUSE OF ACID RAIN AS IT TURNED
OUT WITHIN MINUTES OF THE
LEGISLATION BEING PASSED OF
THERE WAS INVESTMENT MADE IN
RAIL. AT TRANSPORT AND.
MORE PRODUCTION OF LOW SULFUR
COAL IN THE WESTERN STATES THAT
HAD LOW SULPHUR COAL AND SO THE
TARGETS WERE MET THEY WERE MET
AT A LOWER COST THAN WHAT HAD
BEEN ESTIMATED. BUT THE WAY IN
WHICH THEY WERE MATT WAS
COMPLETELY DIFFERENT FROM WHAT
WAS ORIGINALLY CONTEMPLATED THAT
WE CAN PAT OURSELVES ON THE BACK
AND SAY* FEMALE THAT WAS
GREAT.
HOOK BUT BUT BUT BUT BUT IT IS%
IMPORTANT TO ALSO LOOK AT THE
FACT THAT. ALMOST ALL WAYS SAID
I CAN'T SAY ALWAYS BUT IT SEEMS
TO BE MORE COMMON THAN NOT IS
THAT WHEN WE SUCCEED IN THIS
BUSINESS OF SETTING TARGETS AND
PUSHING TECHNOLOGY.
BUSINESSES COME UP WITH A
DIFFERENT CLEVER WAYS OF DOING
IT THAN WHAT WE HAD THOUGHT WAS
GONNA HAPPEN AND THAT'S GOOD
THAT'S GOOD NEWS AND A LOT OF
WAYS. BUT IT DOES MEAN THAT IT
MAKES IT VERY DIFFICULT DIRECTOR
NICHOLS OR AND. MISTER
BROWN.
THE YEAH.
THE AUCTION THAT.
THERE'S VICISSITUDES TO ITS
THEN GOOD SOMETIMES IN BAD.
HASN'T PROVEN OVER RICH AND
LIFETIME SO FAR TO BE.
PREDICTABLE ENOUGH OR RELIABLE
ENOUGH OR DOES IT NEED TO BE.
RE EXAMINED.
THE ACTUAL AUCTIONING.
WELL I THINK IT'S.
.
AND YOU KNOW THEY DO THEIR HAVE
BEEN ALLOWANCES PURCHASED AT
EVERY AUCTION BUT ESPECIALLY IN
THE EARLIER DAYS.
THEY WERE ALWAYS PRETTY MUCH AT
THE FLOOR AND AS THE PROGRAM HAS
GONE ON WE STARTED TO. MOVE UP
ABOVE THE FLOOR BUT ONE OF THE
CAN AND ALL THE ALLOWANCES THAT
WE OFFERED FOR SALE HAVE BEEN
SOLD AT THE LAST
COUPLE OF AUCTION SO THAT'S.
THAT'S ALL YOU CAN SAY IS A
SUCCESS.
AGAIN JUST AS A REMINDER WHEN
WE DESIGNED THE AUCTION SYSTEM
ITSELF IS A KIND OF A FUNNY
AUCTION II DON'T LOOK FOR THE
HIGHEST PRICE. YOU LOOK FOR THE
FIRST TIME THAT SOMEBODY COMES
UP WITH THE PRICE THAT WILL.
TAKE ALL OF THE ALLOWANCES
THOUGH IT'S DESIGNED MORE TO.
MAKE SURE THAT WE HAVE COMPANIES
IN COMPLIANCE WITH THE CAP THEN
IT IS REALLY TO RAISE REVENUE
FOR THE STATE.
WE WERE ASKED AND WE'VE. WE'VE
WE'VE TO SOME EXTENT RESISTED
TRYING TO. GIVEESTIMATES EVERY
YEAR OF HOW MUCH MONEY WOULD
COME IN FROM THE AUCTIONS FOR. A
BECAUSE YOU CAN'T PREDICT
EXACTLY HOW THAT'S GONNA WORK
BUT OVER TIME I THINK WE'VE BEEN
YOU KNOW PRETTY CONSERVATIVE
ABOUT MAKING THOSE PREDICTIONS
AND AND OUR CONSERVATISM HAS
HAS.
PROVEN A GOOD IDEA IT'S BEEN
HELPFUL TO DO OVERALL HAVE BEEN
A COUPLE OF UNSUCCESSFUL
AUCTION.
IS THAT TO BE EXPECTED IN THE
FUTURE.
I THINK THAT.
AGAIN WE WE WORRY MORE ABOUT.
HAVING AUCTIONS WHERE THERE'S
TOO MUCH DEMAND AND PEOPLE CAN'T
GET THE ALLOWANCES THEY NEED AND
THEN THEY ARE OUT OF COMPLIANCE
THAN WE HAVE BEEN ABOUT.
WHETHER WE SOLD ALL THE
ALLOWANCES BUT BUT YOU'D LIKE OF
COURSE IS TO GET EXACTLY TO THE.
TO THE RIGHT SPOT AND.
THAT IS ONE OF THE FACTORS THAT
WE HAVE TO LOOK AT AS WE AS WE
RE EXAMINE THE PROGRAM IS SO IS
THERE SOMETHING WE CAN DO TO
MAKE THOSE MORE PREDICTABLE.
MISTER BROWN DID YOU HAVE
SOMETHING ON.
YEAH I JUST WANTED TO ADD A ONE
POINT I MEAN THERE'S A COUPLE
DIFFERENT WAYS TO TO LOOK AT THE
OPTIONS ONE IS FOR THE REVENUE
AND THE OTHER IS JUST THE PRICES
AND SO WE THINK IT'S KIND OF
IMPORTANT TO DISTINGUISH THOSE
TWO. WHILE REVENUE AND CERTAINLY
BEEN VOLATILE OVER THE LAST
COUPLE OF YEARS THAT'S BEEN DUE
TO IT NOT SELLING ALL OF THE
ALLOWANCES.
PRICES HAVE BEEN RELATIVELY
STABLE THEY'VE KIND OF DIPS
ABOVE AND BELOW. THE FLOOR BUT
HAVE KIND OF HOVERED AROUND THE
FLOOR AND SO THE PRIMARY PURPOSE
OF THE PROGRAM IS TO PROVIDE
THAT CONSISTENT.
PRICE SIGNAL AND SO WE WE THINK
IT HAS HAS DONE THAT.
BUT ON THE REVENUE SIDE THERE
CERTAINLY HAS BEEN THIS
VOLATILITY. WE THINK YOU KNOW IT
IT'S LIKELY THAT THERE WON'T BE
QUITE AS MUCH EARLY SORT OF
DOWNSIDE VOLATILITY GOING
FORWARD GIVEN THAT WE THINK A
BIG PART OF THAT WAS THE. LEGAL
UNCERTAINTY ASSOCIATED WITH THE
COURT CASE
AS WELL AS SORT OF THE POST
TWENTY TWENTY PROGRAM AND SO.
BOTH OF THOSE THINGS HAVE BEEN
CLARIFIED LEGALLY AND SO WE
THINK IN THE LIKELIHOOD OF A
MUCH LOWER REVENUE. A LIKE WE
SAW THE LAST COUPLE YEARS IS
MUCH LESS NOW THAN IT WAS IN
PAST YEARS.
AND.
DIRECTOR NICHOLS THE YET THEN.
THE BALANCING OF THE ECONOMIC
WITH WITH YOUR.
ACTUAL RESULTS OF.
CLEANING UP THE AIR SHALL I SAY.
OF.
THAT'S BOTH REQUIRED BY THE
STATUTE AND ALSO BY THE
ADMINISTRATIVE PROCEDURES ACT
WHEN YOU DO REGULATIONS.
HOW DO YOU BALANCE THOSE TWO
DIFFERENT POINTS O OF THE
ECONOMIC ANALYSIS MEETINGS WHEN
YOU'RE DOING THE REGULATION AS
OPPOSED TO?
DEALING WITH THE STATUTE.
WHAT UP OFFICIAL AYE I APOLOGIZE
OF AYE AYE? I DO MY BEST TO
SOUND LIKE A KNOW WHAT I'M
TALKING ABOUT BUT I DON'T HAVE A
DOCTORATE SO THANK YOU FOR
CALLING YOU DOCTOR NICHOLS BUT I
I'M NOT A DOCTOR.
THEY SAY I PLAYED LAST NIGHT TO
LAY ONE ON TELEVISION. AT THE
PUBLIC GOOD. YOU HAVE A LOT OF
EXPERIENCE TO THANK YOU FOR.
A WHAT I.
I THINK THE ANSWER THOUGH.
TO THE QUESTION IS THAT REALLY
THE THE ART OF REGULATION IS TO.
COMPLY WITH THE VARIOUS
STATUTORY BANDAIDS AND DO IT IN
A AY THAT ULTIMATELY SATISFIES
ALL OF THE DIRECTIONS THAT WERE
GIVEN SO.
WE ARE BOUND WHENEVER WE ADD
TAKE ACTION OUT BY THE
ADMINISTRATIVE PROCEDURE ACT
REQUIREMENTS AND WE GOT THE
OFFICE OF ADMINISTRATIVE LAW OUT
THERE MONITORING US AS WELL AS
OF COURSE THAT. VARIOUS GROUPS
THAT ARE.
INTERESTED IN IN SUING US IF
THEY THINK WE'RE DOING THE WRONG
THING. UP BUT THE. THE
STATUTORY.
THAT THERE IS A TENDENCY I
SUPPOSE IT TO LOOK AT THE MOST
RECENT STATUTE AS THE THING
THAT'S THE MOST IMPORTANT
BECAUSE THAT'S THE MOST RECENT
EXPRESSION OF WHAT THE
LEGISLATURE. THINKS YOU KNOW SO
WE HAVE TO PUT THAT ON TOP OF
EVERYTHING ELSE THAT WEIRD THAT
WE'RE DOING AND.
WE ARE AT A STRIVING TO MAKE
SURE THAT WERE MEETING ALL OF
THE DIRECTIONS BOTH THE SPIRIT
AND THE LETTER IT WAS
IF THAT WAS.
LET ME FOCUS JUST ON ONE
PARTICULAR POINT AND I'M TALKING
THEN ABOUT THE FUEL COSTS.
SOMEWHERE AROUND SEVENTEEN
CENTS A GALLON CABIN TRADE.
.
THAT IMPACTS THE PUMP PRICE IS
THAT.
VERY ACCURATE THAT WAS LIVE I
THINK THE INFORMATION WE CAME UP
WITH AT THE TIME THAT WE FIRST
BROUGHT FEELS UNDER THE CAP.
OKAY.
AND AND NOW WE'VE.
.
GOD OF.
FAIRLY SUBSTANTIAL NEW. INCREASE
IN.
THE TAXES ON FUELS AND ON HAVING
A VEHICLE. OF.
HOW DO YOU SEE THIS?
IMPACTING.
THE WHOLE CAP AND TRADE IN YOUR
GOALS.
DRASTICALLY CHANGE THE MOTORING
PUBLIC HAVE BE BECAUSE THEY WNT
TO CHANGE THINGS OR JUST BECAUSE
OF THE IMPACT ON THE PRICE SURE.
OF.
EVER SINCE WE STARTED ATOM.
IMPLEMENTING ADDS AB THIRTY TWO.
THERE HAVE BEEN.
PEOPLE.
MAINLY ECONOMISTS ARE PEOPLE
WHO THINK LIKE ECONOMISTS WHO
SUGGESTED THAT WE SHOULD USE
PRICES AS A WAY OF ACTUALLY
CHANGING PEOPLE'S BEHAVIOR. THAT
IF WE WOULD JUST PUSH THE COST
OF ELECTRICITY UP PEOPLE WOULD
CONSERVE OR IF WE JUST PAY THE
COST OF DRIVING.
HIGH ENOUGH PEOPLE WOULD DECIDE
TO DO SOMETHING DIFFERENT.
.
I DON'T KNOW OF ANY GOVERNOR. OF
ANY O THE SEVERAL GOVERNOR'S TO
LIVE WORK FOR HER INCLUDING
JERRY BROWN TWICE WHO WOULD.
ENDORSE A POLICY LIKE THAT ON
BEHALF OF THEIR ADMINISTRATION
IT'S JUST.
POLITICALLY IT DOES NOT MAKE
SENSE TO TRY TO DRIVE PEOPLE'S
BEHAVIOR IN A WAY THAT.
YOU KNOW IS IS SO I DIRECTLY
TIED TO THEIR POCKETBOOKS
ESPECIALLY WHEN IT'S REGRESSIVE.
CERTAINLY BACK AGAIN REST. YOU
KNOW IT'S GONNA AFFECT CERTAIN
PARTS OF THE STATE AND CERTAIN
GROUPS OF PEOPLE DIFFERENTLY SO.
AGAIN IT'S JUST SORT OF GETS
BACK TO THIS BALANCE THING I
THINK THAT.
THERE'S NO QUESTION THAT
REGULATION OF ANY KIND.
COSTS MONEY.
AND OUR HOPE IS BEEN THAT WE
COULD UTILIZE THE REVENUES FROM
THESE PROGRAMS IN WAYS THAT
SUPPORTED THE NEEDS OF THE
PEOPLE FOR TRANSPORTATION SO
WHILE IT'S TRUE THAT HAVING.
FUEL UNDER THE CAP.
HAS THE POTENTIAL TO ADD TO THE
BURDEN OF COST AT THE SAME TIME
WE'RE INVESTING MONEY IN THINGS
THAT WILLMAKE PEOPLE US SAVE
MONEY HELP PEOPLE SAVE MONEY.
INCLUDING.
ICENTIVES TO TURN OVER THE
FLEET SO THAT PEOPLE CAN GET A.
BUNCH OF MORE EFFICIENT CARS
ORDER OF OR GET INTO CARS THAT
DON'T USE GASOLINE AT ALL.
ALRIGHT BULLETS
STOP THANK YOU LET'S GO KEEP ON
TRACK WITH THE SCOPING PLAN
SENATOR.
.
SKINNER YOU HAVE A QUESTION.
THANK YOU I WOULD NOTE THAT
YESTERDAY.
I A.
PAGE.
I THINK WAS LESS THAN THREE DOGS
TUNE NINETY FIVE A GALLON FOR MY
GAS EVEN WITH THE.
GASOLINE UNDER THE CAP IN
CALIFORNIA AND WITH OUR NEW GAS
TAX.
.
IN YET I ALSO UNDERSTAND THAT
GAS PRICES OVERALL ARE UP RIGHT
NOW THERE'S A LITTLE SPIKE OF
THEM IN.
U. S. SO I THINK.
.
IN TERMS OF THE IMPACT TO SO FAR
ANYWAY TO THE INDIVIDUAL AND
HOUSEHOLD STILL BEEN PRETTY LOW.
.
BUT MY I WANNA MOVE NOW TO WE
FOCUSED ON THE POTENTIAL.
.
SCENARIOS IF OUR.
.
BANKS ALLOWANCES IF IF WE GET IN
THE SITUATION WHERE.
.
WHERE?
?
THE KIND OF SCENARIOS THAT ILIO
DESCRIBED MIGHT THAT PUT US IN A
SITUATION WHERE WE'RE NOT
MEETING OUR AND MEETING THE
REDUCTIONS THAT WE INTEND SO
WE'VE HAD SOME DISCUSSION ON
THAT AND I WANT IT NOW. ASK
A DIFFERENT QUESTION THAT MAY
IMPACT
OUR ABILITY FOR OUR CAP AND
TRADE TO.
FUNCTION IN THE MARKET IN THE
WAY WE INTEND.
AND THAT IS RIGHT NOW WEALTH
WHILE I THINK WHEN FIRST
ANTICIPATED CALIFORNIA WAS
HOPING THAT WE WOULD HAVE MORE
STATES PARTICIPATE IN OUR MARKET
BASED PROGRAM.
ON AND EVEN MORE PROVINCES SO
FAR WE HAVE MATERIAL IN QUEBEC.
CORRECT
SO.
BUT RIGHT NOW WE HAVE ONTARIO
LOOKING AT THE GAS PAVE SKIS ME
A CARBON TAX BURDEN.
UN IN PERHAPS MOVING AWAY FROM
PARTICIPATION IN THE CAP AND
TRADE PROGRAM WE ALSO HAVE THE
STATE OF WASHINGTON RIGHT NOW.
LOOKING IN THE DIRECTION OF THE
CAR A CARBON TAX NO WHILE STATE
OF WASHINGTON HASN'T JOINT.
OUR.
.
PROGRAMS.
I THINK THAT SOME OF THE
INTERACTIONS THE GOVERNOR'S HAD
WITH VERY STATES WAS IN THE
HOPES THAT IS AS TIME WENT ON.
WE WOULD HAVE A WEST
YOU KNOW PROVINCE PROVINCIAL IN
WEST COAST.
YOU KNOW BIG MARKET.
I'M SO I WONDER IF ANY OF YOU
HAVE DONE TO SOME.
FREE THINKING ABOUT
HOW THAT MAY IMPACT OUR CAPTAIN
TREAT MARKET.
THE MOVE TO A CARBON TAX VERSUS
PARTICIPATION IN OUR MARKET.
WELL AT THAT.
COUPLE COMMENTS FIRST OF ALL AND
WE HAVE BEEN IN CLOSE TOUCH WITH
BOTH OREGON AND WASHINGTON ABOUT
THEIR CARBON PRICING IDEAS AND
APPROACHES AND. WE UNDERSTAND
THAT THE WASHINGTON.
LEGISLATURE AND GOVERNOR AT THIS
POINT THINK IT'S MORE LIKELY
THAT THEY WILL BE ABLE TO DO A
TAX THEN TO DELAY A CAP AND
TRADE PROGRAM.
I HAVE TO BE ADAM CANDID WITH
YOU THAT.
A CAP AND TRADE PROGRAM IS NOT
AN EASY THING TO IMPLEMENT.
IT TAKES A A STATE OR PROVINCE
OR COUNTRY THAT HAS THE KIND OF
TECHNICAL RESOURCES THAT WE HAVE
HERE IN CALIFORNIA. TO BE ABLE
TO DESIGN AND RUN A PROGRAM THAT
INCLUDES THE KIND OF AUCTIONING
AND OVERSIGHT AT THE MARKET OF
THAT THAT WE HAVE.
AND WE HAVE RELIED ON THE
QUESTION CLIMATE INITIATIVE INC
GROUP TO TO CARRY OUT A LOT OF
THESE TASKS OF WHICH THEY DO FOR
US AND FOR THE CANADIAN
PROVINCES.
THERE ARE OTHER CANADIAN
PROVINCES.
ACTIVELY LOOKING AT THE
POSSIBILITY OF GOING THE CAP AND
TRADE ROUTE BUT IF THEY DO THEY
WILL PROBABLY SIGN UP.
TO BE PART OF A LARGER MARKET
RATHER THAN TRYING TO DO IT ON
THEIR OWN FOR JUST THAT REASON.
FEW MONTHS AGO I WAS INVITED TO
A MEETING OF.
COUNTRIES THAT HAVE CAP AND
TRADE PROGRAMS AS STARTING WITH
THE E. YOU.
WHICH IMPLEMENTS A PROGRAM FOR
THE WHOLE DAY EUROPEAN UNION.
BUT ALSO NEW ZEALAND YOU KNOW
AND SOUTH KOREA AND THAT CHINA
LOOKING AT DOING IT AND.
WE'VE SEEN THAT IT ALL OF THEM
A WE ALL SHARE SOME COMMON
ISSUES AND SOME COMMON CONCERNS
ABOUT HOW TO MAKE THESE PROGRAMS
WORK WITH EACH OTHER IF WE CAME
OUT. OF AND IT'S NOT BECAUSE
HE'S GOT SOME IDEOLOGICAL
OBJECTION TO TAXES VERSUS A
VERSUS THE CAP AND TRADE PROGRAM
IT'S A VERY. PRAGMATIC DECISION
IS JUST WHAT WORKS BEST IN YOUR
PARTICULAR JURISDICTION WHAT DO
YOU THINK IS THE MOST LIKELY TO
BE ABLE TO ACHIEVE AS A RESULT
SO.
HAVING SAID THAT WE HAVE
ENCOURAGED OUR FELLOW PACIFIC
COAST STATES TO TAKE WHICHEVER
ROUTE THEY THINK THEY CAN DO.
WE'VE CRITIQUE THEIR PROPOSALS
WHERE WE THOUGHT THEY WERE GOING
TO BE EFFECTIVE.
AND WE CERTAINLY OFFERED
ASSISTANCE OREGON NOW IS
ACTUALLY MORE INCLINED TO MOVE
TO THE CAP AND TRADE SIDE.
AS OPPOSED TO WASHINGTON AND
WILL CONTINUE TO WORK WITH BOTH
OF THEM. US SO THAT WE CAN HAVE
AS MUCH.
COMPARABILITY AS MUCH
INFORMATION SHARING.
AS WE POSSIBLY CAN. IN CERTAIN
AREAS LIKE THE.
LOW CARBON FUEL STANDARD WE'VE
BEEN VERY.
AGGRESSIVE ABOUT TRYING TO
PROMOTE OUR VIEW OF THE WORLD
AND GET OTHERS TO JOIN WITH US
BECAUSE IT'S SO CLEAR THAT
THERE'S A DIVIDE AND CONQUER
KIND IF APPROACH THAT THE. FUEL
SUPPLIERS HAVE HAVE TAKEN IN THE
STATE SENATE THAT DOESN'T THAT
DOESN'T HELP ANY OF US.
BUT.
ANY OTHER IS IN THIS MARKET
AREA.
I THINK WE COULD SURVIVE WITH
THE YOU KNOW A MIX THE MAIN
THING IS TO JUST SEE PEOPLE
MOVING FORWARD.
HE COULD YOU SHARE WITH US ANY
CONTINGENCY PLANNING THAT YOU
MAY HAVE IN CASE.
ONTARIO MOVES OUT OR SOME OTHER
SAID THAT THERE'S A CHANGE WHAT
WILL HOW WILL AFFECT OUR CAP AND
TRADE IT'S WELL IT WON'T AFFECT
IF IT IT IS SO FAR HAVING
ONTARIO IN THE PROGRAM ARE
PRETTY MAD MOVING TOWARDS THE
PROGRAM. HAS NOT SHOWN ANY
SIGNIFICANT AND.
AB IT AFFECTS ONE WAY OR THE
OTHER OTHER THAN PSYCHOLOGICAL
BUT WRITTEN INTO OUR AGREEMENTS
TO LINK WITH OTHER JURISDICTIONS
THERE ARE PROVISIONS FOR HOW TO
UNDERMINE THE RELATIONSHIP. IF
EITHER ONE SIDE DECIDES THEY
JUST DON'T WANNA DO IT ANYMORE
OR IF THEY ADOPTED SOME
PROVISIONS THAT WERE
ANTITHETICAL TO OUR BELIEFS
ABOUT HOW THE PROGRAM WORKS
COUNTRY INTO WE HAVE FIGHT LIKE
A CLEAR ALLOCATION OF WHO GETS
CREDIT. FOR THAT THE FOR THE A
PURCHASE OF YEAH THERE'S TO THE
READERS KNOW THAT OF ACCOUNTING.
THAT'S A VERY IMPORTANT FEATURE
OF THE
CENTERS HAD A FOLLOW UP
QUESTION.
.
AND IT ON A COUPLE TOPICS I
DON'T OF HOW HOW YOU ONE
STRUCTURE THE REST OF THIS BUT.
AYE AYE I DO HAVE A QUESTION
ABOUT.
HER INITIAL COMMENTS ABOUT YOUR
NICHOLS ABOUT THE AUTO INDUSTRY.
AS WELL AS AN INVENTORY.
BUT WE CAN WE CAN RETAIN THAT
FOR LATER IF YOU WANNA KEEP
MOMENT YEAH I WAS TRYING TO.
PEOPLE DON'T HOLD TO THIS
SCOPING IRAN WELL THIS IS ALL
WITHIN THE SCOPE OF PLAN THAT
I'M TALKING ABOUT BUT.
.
YEAH HAPPY TO DEFER IF YOU WANNA
KEEP A STRUCTURE TO THIS BUT I
DO WANNA GET THOSE QUESTIONS AT
SOME POINT I WANTED TO TRY TO
FLESH OUT SOME OF THESE.
.
SECTORS BECAUSE I'M WE KNOW THAT
THAT.
THE SCOPING PLAN ASSUMES THE
CAP AND TRADES GOING TO REDUCE
EMISSIONS FROM EITHER THIRTY
FOUR MILLION.
THERE'S SEVENTY NINE MILLION
TONS AND AND WE WANT TO WE ASKED
THE AIRPORT IF YOU HAVE AN
ESTIMATE ON WHICH SECTORS.
WOULD ACTUALLY ACHIEVE THOSE
REDUCTIONS AS RESULT OF OF.
.
THE CAP AND TRADE AND IF YOU
DON'T THEN HOW CAN THAT THE.
AYE CAR PLAN BE USED TO STATE
GREENHOUSE GAS INVENTORY TO
EVALUATE MONITOR WHETHER THE CAP
AND TRADE IS DELIVERING THE
pTHE PLANTS SORT OF. WHAT THE
OVERSIGHT?
?
THAT IS BECAUSE I KNOW IT SAID
THE EXPECTATION IS THE FREE
MARKET. BUT. WE NEED TO COMPARED
FUTURE DATA AGAINST PROGRAM
EXPECTATIONS IN THE JUST THEM
WITH NECESSARY SO. ARM.
YOU HAVE.
ANYTHING TO ADD HAVE MISS
NICHOLS.
I AM I THINK THE.
I WANT TO READ THE RESPONSES
THAT WERE IN OUR.
IN OUR WRITTEN SUBMITTALS TO
YOU BUT.
SO I I THINK I'LL PROBABLY REFER
YOU.
BACK TO THAT. OF BUT. AGAIN THE
THE IT IS IMPOSSIBLE TO KNOW
EXACTLY WHICH
SECTORS OF THE ECONOMY ARE GOING
TO BE THE ONES THAT RESPOND TO
SHIFTING PRICES.
THAT'S THE
ONE OF THE BEAUTIES AS WELL AS
THE FRUSTRATIONS OF THIS KIND OF
PROGRAM IS THAT.
IT ALLOWS BUSINESSES TO MAKE
THEIR OWN DECISIONS.
BUT OVERALL AS YOU HAVE THE
CAPTIVE MAKE SURE THAT YOU'RE
THAT YOU'RE STAYING ON TARGET.
BUT I MEAN WE DO WE DO A
CERTAIN AMOUNT OF PREDICTING
BUT.
ONE OF THE THINGS I FIND
INTERESTING ABOUT A CALIFORNIA
HAVING LIVED HERE AND WORKED AT
THE STATE LEVEL FOR SO LONG IS
THAT. WE DON'T DO NEARLY AS MUCH
ECONOMIC FORECASTING AND.
YOU KNOW OVERALL.
PLANNING AS WE MIGHT THINK
ANYWHERE NADA OBVIOUSLY A
PLANNED ECONOMY IN THAT KIND OF
SOVIET SENSE BUT GIVEN BUT A
LARGE ECONOMY WE ARE.
WE DON'T REALLY DO AS MUCH I
DON'T THINK A PROJECTING FORWARD
ABOUT WHERE. CHANGES ARE GOING
TO OCCUR WHERE NEW INVESTMENTS
ARE GOOD WE THAT'S PARTLY
BECAUSE WE'RE STATE IS VERY OPEN
TO INNOVATION OF ALL KINDS AND
THERE'S A LOT OF IT.
I GUESS THE QUESTION IS HOW YOU
COULD BE ABLE TO TRACK THE
IMPLEMENTATION OF THE PLAN
BECAUSE WE KNOW WHAT.
THE TARGETS ARE FOR S. B. THREE
TWO AND WHAT WE HAD LEVELS WE
HAVE TO GET HOW IF WE DON'T KNOW
WHICH SECTORS ARE GOING TO.
PROVIDED HOW YOU AT THE AIRPORT
TRACK THAT IMPLEMENTATION SO WE
KNOW THAT WE'RE.
WE'RE GONNA MAKE MAKE IT WELL AT
A CERTAIN LEVEL THERE IS
INFORMATION THAT WE CAN'T LOOK
AT.
I THAT IS CONFIDENTIAL
INFORMATION BECAUSE THIS
BUSINESS INFORMATION ABOUT WHO'S
BUYING AND WHO'S SELLING ON HOW
AND SAYS. WE DON'T PUBLISH IT
BECAUSE OF THE NATURE AGAIN OF
THE MARKET WE DON'T PUT OUT A
LIST OF WHO BOUGHT ALLOWANCES AT
THE AUCTION YOU KNOW HOW MANY
WERE BOUGHT OVERALL AND WHAT THE
PRICE WAS. BUT.
WE'RE NOT GOING TO TELL YOU WHO
ACTUALLY BOUGHT THOSE ALLOWANCES
HOWEVER. THERE'S A WAY THAT WE
CAN GET THAT INFORMATION BECAUSE
IT IS IT IS KNOWN IT IS BEING
TRACKED SO. A ONE.
QUESTION REALLY IS IF IT'S SO
IMPORTANT TO KNOW.
AT TO BE ABLE TO PREDICT WHO
THOSE WORK.
WE WOULD HAVE TO FIND A WAY TO
GO BACK AND LOOK AT PAST
HISTORICAL DATA. AND YOU KNOW
FIND A WAY TO GET THAT
INFORMATION AT LEAST IN AN
AGGREGATE FORM. OUGHT TO LOOK AT
AND. LIKE I SAID I MEAN IF WE
SAW THAT.
WE OURSELVES DID SAY THAT THERE
WAS SOME SECTOR THAT WAS. USING
ALL THE ALLOWANCES AND NOBODY
ELSE WAS BUYING ANY ARE ONLY YOU
KNOW WERE ONLY SELLERS. THAT'S
SOMETHING WE PROBABLY WOULD WE
WOULD DOWN ONE WE WOULD BE ABLE
TO.
.
FIGURE OUT WHETHER THAT WAS
SIGNIFICANT IN SOME WAY IN TERMS
OF THE FUTURE THE PROGRAM YET IS
YOUR EARLIER COMMENTS WAS THAT
THE.
ELECTRICITY SECTOR MY
SUCCEEDING WITH THE GOALS THAT
WOULD HAVE BUT. I DON'T KNOW HOW
THE CEMENT SECTOR IS WITH THE
REFINERY SECTOR WITH THESE OTHER
COVERED ENTITIES ARE ARE DOING
OR THE PROJECTION THAT WE WERE
WE EXPECT THEM TO BE IN.
THREE YEARS AND FIVE YEARS IN
TEN YEARS WE KNOW HOW THEY'RE
DOING IN TERMS OF THEIR
EMISSIONS BECAUSE THEY REPORT IT
SO SECTOR BY SECTOR COMPANY BY
COMPANY.
ON N ANNUAL BASIS WE HAVE
AUDITED ADMISSIONS RESULTS
SO THE ONLY THING WE DON'T KNOW
IS WHETHER. YOU KNOW THE CEMENT
SECTOR HYPOTHETICALLY IS DECIDED
THEY WANNA MAKE BEANO BUILD A
LOT MORE OF CAPACITY IN
CALIFORNIA AND SO THEY'RE OUT
THERE BUYING ALLOWANCES FROM.
WELL COMPANIES OR WHATEVER.
YOU'RE CHAIRMAN IF I MIGHT JUST
YOUR QUESTION I THINK THERE'S A
REALLY IMPORTANT GAP IN THE
AVAILABLE DATA TO BE ABLE TO
TRACK THESE ISSUES WITH RESPECT
TO THE CHAIR I THINK.
THERE'S AN ISSUE HERE WHICH IS
THAT THE MODELING WORK DONE IN
THE SCOPING PLAN DOES NOT
INCLUDE PROJECTIONS OF THE
IMPACTS OF CALTRAIN.
AND SO IF ONE LOOKS SECTOR BY
SECTOR AT WHAT THE PROJECTIONS
IN THE SCOPING PLAN ARE THERE'S
NO ELEMENT IN THERE THAT
INCLUDES THE AFFECT OF THE
SINGLE LARGEST PART OF THE
SCOPING PLAN.
SO IF ONE WANTS TO OBSERVE THE
DATA THE MISSION ST A TO WHICH
CHAIR NICHOLS REFERS THAT CAN BE
DONE.
IT'S NOT POSSIBLE TO BENCHMARK
THAT CURRENTLY AGAINST THE
CURRENT EXPECTATIONS OF WHAT
THIS PROGRAM MIGHT TO.
I WANNA BE CLEAR NOBODY CAN
PROJECT TEN FIFTEEN YEARS IN
ADVANCE AT THE VETS ACCURATELY
ITS NOT A QUESTION OF WHETHER
NOT EVERY SINGLE DESMOND DECIMAL
POINT IS CORRECT. RATHER WITHOUT
A MECHANISM TO TRANSPARENTLY SAY
WHAT WE THINK WHAT TO THE DATA
TELUS RELATIVE TO THOSE
EXPECTATIONS THERE'S NO WAY TO
ACTUALLY TRACK AND IMPLEMENT
THIS WORK. I NOTE THE CHAIRMAN
AND MEMBERS OF THE BOARD AND
STAFF ARE DOING THIS INTERNALLY.
BOB THERE'S NO PUBLIC WAY TO
ANALYZE THESE ISSUES WITHOUT
ADDITIONAL.
DURING PART NUMBERS.
DOES THE LA ALL HAVE ACCESS TO
THIS.
DATA.
WHY DID WE HAVE ACCESS TO THAT
PUBLICLY AVAILABLE DATA THAT ARE
NOT PART ARE PRETTY TO ANY SORT
OF INTERNAL CONVERSATIONS THAT
MIGHT OCCUR?
PERSON V. WOULD BETTER BE
BENEFICIAL FOR YOU TO.
WELL ARMED YEAH STATUS RIGHT
YEAH I MEAN I THINK YOU KNOW IN
GENERAL SORT OF HAVING MORE
INFORMATION ABOUT WHAT THE
EXPECTATIONS ARE ASSOCIATED WITH
THE DIFFERENT PROGRAMS AND.
YEAH SO THAT THE LEGISLATURE AND
STAKEHOLDERS CAN EVALUATE SERVE
THEIR GREED TO WHICH THOSE
EXPECTATIONS ARE BEING MEDICINE
IMPORTANT. UP PART OF JUST
OVERSIGHT PROCESS ARM IT I I
MEAN I THINK IT IS IMPORTANT TO
NOTE IN THIS IS WAS NOTED IN
EARLIER COMMENTS JUST.
THE DIFFICULTY ASSOCIATED WITH
DOING THAT BY A PARTICULAR
SECTOR IN THE CAP AND TRADE
PROGRAM. ARM AND NOW I THINK WE
JUST THINK IT'S IMPORTANT TO
RECOGNIZE YET THAT THAT'S THE
DESIGN OF THE PROGRAMS WE DON'T
KNOW EXACTLY WHERE THOSE
REDUCTIONS WILL. OCCUR.
AND
TRYING TO SORT OF TEASE OUT YOU
KNOW AFTER THE FACT EXACTLY
WHICH REDUCTIONS CAME FROM WHICH
POLICY CAN BE. A A DIFFICULT AND
AND OFTENTIMES RESOURCE
INTENSIVE EXERCISE WITH A
PARTICULAR METHODOLOGICAL IN
DATA CHALLENGES SO.
YUP IT'S IT'S IMPORTANT TED TO
TRY TO COME UP WITH THOSE TYPES
OF NUMBERS AND TRY TO UNDERSTAND
WHAT THE EFFECTS ARE.
IS JUST I THINK IT'S.
AND ARGUE KIND OF A LOT MORE
DATA INTENSIVE AND RESOURCE
INTENSIVE THAN AT MIKE'S GONNA
FIRST APPEAR I GUESS RELEASED
OUR YOU KNOW FOR CAPITA GRADE
RELATIVE TO OTHER PROGRAMS.
WANT ONE OF THINGS THAT I THINK
MAKES THE SOLVE EVEN MORE
DIFFICULT IN TERMS OF DOING YOUR
JOB.
ME AS A BOARD MEMBER.
IS THAT.
OF WE HAVE TO LOOK AT WORST
CASE.
OF SCENARIOS ALWAYS THAT'S
IMPORTANT.
WE ALSO HAVE TO LOOK AT.
OPTIMISTIC WHAT WE HOPE WILL
HAPPEN BUT BETWEEN THOSE TWO
THINGS.
THERE'S OFTEN A VERY LARGE GAP
AND.
THIS IS WHERE POLITICS ALSO
TENDS TO RAISE ITS HEAD WHEN WE
FIRST A DECIDED TO TO BRING
FUELS UNDER THE CAP WE HAD WE
HAD PUT THAT. OUT THERE BUT WE
HADN'T WE POSTPONED IT UNTIL THE
PROGRAM WAS IN EFFECT FOR COUPLE
OF YEARS AND THEN WE BROUGHT THE
FEELS UNDER. THERE WERE ACT
THERE WERE OUR PREDICTIONS OF
NOW DRASTIC
THE FACTS OF THE PRICE OF
GASOLINE AND BITTER FIGHTS AMONG
EXPERTS AND PEOPLE WHO ARE
FRIENDS OF A ARBY'S AND FRIENDS
OF THE PROGRAM ABOUT. WHO IS AT
WHOSE NUMBERS WERE CORRECT
BUT THE WAY THAT THAT GETS
IMPLEMENTED ORINDA WAY GETS
COMMUNICATED OFTENTIMES IS YOU
KNOW ADVERTISEMENTS ON YOUR
LOCAL RADIO STATION THAT SAYS HE
ABOUT THANKS TO THE CAP AND
TRADE PROGRAM? YOU'RE GOING TO
BE PAYING MORE AT THE PUMP IN
YOUR WILL BE ABLE TO SEND YOUR
DAUGHTER TO COLLEGE AND THAT
THERE WERE FOR IT THAT IS
ACTUALLY. ONE OF THE ADS THAT
WAS THAT WAS RUNNING.
IN THE IN THE VALLEY AS I HEARD
IT OF SO. I JUST A POINT ABOUT
HOW IT'S IMPORTANT TO HAVE THE
DATA IT'S IMPORTANT TO BE ABLE
TO ANALYZE THE DATA IT'S
IMPORTANT TO BE.
HONEST AND TRANSPARENT WITH THE
PUBLIC ABOUT WHAT WE KNOW AND
WHAT WE DON'T KNOW BUT WE ALSO
HAVE TO RECOGNIZE THAT THERE'S A
VAST ABILITY FOR.
DISTORTION.
HAS THESE THINGS ROLL FORWARD
IN AN AREA WHERE IT IS ACTUALLY
ALWAYS POSSIBLE TO KNOW WHAT'S.
CENTER STERN.
I DO THINK YOU MISTER CHAIR UP
ON THIS POINT.
I'M I'M SORT OF TORN BECAUSE.
WE HAVE A JOB TO DO STRICT
OVERSIGHT HERE AND WE WE WANT TO
KNOW WHAT THE FUTURE COULD LOOK
LIKE AND WE WANT TO KNOW WHAT
YOU'RE GONNA DO WITH.
THE OVER YOU KNOW THAT THE
THE ALLOWANCES THAT HAVEN'T BEEN
RELEASED IN THE MARKET OR.
WHAT'S HELD OUT THERE.
BUT I ANALOGIZE TO YOU KNOW THE
FEDERAL RESERVEHERE AND
THINKING YOU DON'T HEAR. THE
CHAIR OF THE FEDERAL RESERVE
GIVING TOO MUCH INFORMATION
ABOUT OUT THERE ABOUT.
KNOW WHAT'S GONNA HAPPEN NEXT
CYCLE AND AS SOON AS YOU TESTIFY
AND SAY SOMETHING HERE IN THIS
HERE MA'AM ALREADY SEEING IN
MARKET ANALYSES ON THE JANUARY
FOURTH HEARING WE TALKED ABOUT
OVER ALLOCATION.
PEOPLE ALREADY GONNA START
READING INTO ANY WORD YOU SAY
AND SPECULATING POTENTIALLY ON
THAT SO I I MEAN. IT'S IT'S AN
INTERESTING QUESTION AS TO HOW
TO HAVE THIS CONVERSATION IN A
WAY THAT. THE LEGISLATURE HAS
CONFIDENCE THAT YOU'RE ON TRACK
TO MEET OUR GOALS AND.
THAT THE MARKET IS GOING TO BE.
DOING ITS JOB OF REDUCING
POLLUTION BUT AT THE SAME TIME
NOT.
.
YOU KNOW NOT OVER SUPPLYING.
POTENTIAL SPECULATORS IN THE
MARKETPLACE SO I I I I THINK
IT'S AN INTERESTING QUESTION A
PUZZLE ON OF HOW MUCH DATA IS
USEFUL TO PUT OUT THERE
OBVIOUSLY THAT LOOKED LIKE THE
WALL STREET RIGHT THERE'S PLENTY
OF PRIVATE ANALYSTS OUT THERE
WHO LOOK AT ALL THE MARKET DATA.
AND THAT'S WHAT THEY MAKE THEIR
LIVING ON IS PREDICTING THE
FUTURE AND EVERYTHING HAVE A
DIFFERENT.
MODELS THAT WOULD LOOK IT FEELS
IN A CAP RIGHT SOME MAY SAY IT
PRESIDENT HIGH TURNS OUT THEY
WEREN'T OKAY THOSE ANALYSTS ARE
WRONG IF YOU BET ON THOSE GUYS
YOU LOSE SOME MONEY. HERE.
.
YEAH I IT'S IT'S
IT'S COMPLICATED AND.
AYE I JUST PUT FLAGGING THAT
FOR FUTURE CONSIDERATION EVEN
FOR FOR ROSS R. DANNY TO THINK
ABOUT YOU KNOW HOW DO WE.
PREVENT MARKET SPECULATION BUT
STILL GET GOOD ENOUGH.
DATA TO OUR INDEPENDENT
ANALYSTS ARE ADVISORY COMMITTEE
SO THAT WE CAN BE ADEQUATELY
INFORMED AND I I DON'T KNOW WHAT
THAT SWEET SPOT IS BUT. I I HAVE
A SIMILAR CAUTIOUSNESS ABOUT IT
AND LOOK I DON'T WANT TO SEE THE
MARKET FLOODED WITH.
A BUNCH OF UNUSED ALLOWANCES
AND SUDDENLY THE PRICES TANK AND
WE DON'T ACTUALLY GET ANY
ACTIVITY AND WE BASICALLY.
WELL WE JUST.
WE ARTIFICIALLY MEET OUR CAP BY
FLOODING THE MARKET WITH
ALLOWANCES THAT OTHERWISE WOULD
BE THAT'S LIKE ACCOMPLISH
ANYTHING WE WANT.
.
BUT THAT'S THAT'S MY POLITICAL
ORIENTATION RIGHT SO.
YEAH THAT'S THAT'S MY COMMENT
ON THAT POINT I STILL HAVE TO
OTHERS FOR YOU BUT I'LL WAIT.
I'M I THINK QUESTION THREE HAS
BEEN MORE LAST ANSWERED AND
WE'VE TOUCHED ON THE.
LOOK CARBON FUEL STANDARDS BUT
I DID ON THE EIGHTEEN PERCENT
WHAT I DIDN'T ME OR I WOULD LIKE
SOME CLARIFICATION IS THE LAST
PART OF THE QUESTION IS IF THE
AIR RESOURCE BOARD.
SUBSEQUENTLY DETERMINED SET A
HIGHER CARBON INTENSITY
REDUCTION IS WARRANTED. THAT
WILL NEED TO AMEND THE SCOPING
PLANNED FIRST OR DO YOU BELIEVE
THAT YOU HAVE THE ABILITY TO
TEARS INCREASE THAT. FACTOR
SO UP THAT'S A VERY GOOD
QUESTION AND IT DOES GET BACK TO
THE QUESTION OF WHAT IS A
SCOPING PLAN HOME A SCOPING
PLAN.
AS AS WE UNDERSTAND THAT AND OF
COURSE WE'VE BEEN GIVEN SOME
DIRECTION ON THIS. IS A
PERIODICALLY UPDATED ROADMAP AS
YOU'VE SAID THAT I'M SHOWS HOW
WE INTEND TO.
OVERALL MEET THE TARGETS HAT
HAVE BEEN SET GIVES A LOT OF
ANALYSIS OF.
WHAT HAPPENED BEFORE AND AND
WHY WE THINK THAT MIX OF
MEASURES?
IS THE RIGHT ONE BUT LEAVES IT
TO SUBSEQUENT RULEMAKING STEP
ACTUALLY DETERMINE WHAT THE HARD
NUMBERS ARE GOING TO BE. WE
WOULD EXPECT THE SCOPING PLAN
WILL GET UPDATED FROM TIME TO
TIME BUT WE YOU WE WILL BE WRONG
AND UNLIKE THE.
STATE IMPLEMENTATION PLAN WHICH
THAT WE SUBMIT TO EPA SHOWS
HOWARD TRYING TO HOW WE'RE GOING
TO MEET. AIR QUALITY GOALS ON
THE
PLAN ITSELF IS NOT A REGULATORY.
DOCUMENT AND IF IN THE RULE
MAKING PROCESS WE DECIDE WE
LEARN THAT.
A NUMBER THAT WE SAT IN THE
PLAN IS EITHER TOO LOW OR TOO
HIGH.
WE CAN TAKE ACTION ON THAT
PARTICULAR PROGRAM WITHOUT
HAVING TO GO BACK AND AMEND THE
PLAN JUST TO FIT JUST TO FULFILL
THAT NAM.
EXPLANATION TO TIP THAT THAT
OUTFIT THAT CHANGE SO WE WILL
UPDATE THE PLAN ON A REGULAR
BASIS AND LOOK AT ALL OF.
PROGRAMS AT OF UNDER OR OVER
PERFORMED FOR EXAMPLE WE. WE
UNDER PERFORMED IN THE AREA IT
SAYS I SET IT TO CREDIT FOR
HAVING OVER PERFORMED ON THE
ELECTRICITY SECTOR WE UNDER
PERFORMED ON FORESTRY IT WASN'T
A VERY LARGE NUMBER BUT IT WAS.
YOU KNOW WE DIDN'T ACHIEVE WHAT
WE HAD.
HOPE TO ACHIEVE IN THAT AREA
AND SO YOU HAVE TO GO BACK AND
SAY OKAY. RB SILL MOVING AHEAD
CORRECTLY OVERALL AND WHAT CAN
WE DO WITH THAT FORESTRY PROGRAM
TO NOW MAKE IT MORE AFFECT
SO IT BECOMES SORT OF A.
I SAY IT'S LIKE A META META
ANALYSIS OF THE WHOLE PROGRAM
BUT IT'S NOT.
IN AND OF ITSELF THE THING THAT
IS ACTUALLY CAUSING ACTION TO
HAPPEN.
S. RUSS ANYTHING YOU HAVE DbN
ON THE.
.
CARBON INTENSITY OF.
GO ALRIGHT LET'S MOVE ONTO.
THE FIFTH QUESTION WE'RE.
I GUESS WE'VE WE'VE WE'VE TALKED
BUT THE OVERSUPPLY OF ALLOWANCES
AND.
IN A PROGRAM THAT WILL ALLOW
COVERED AND FEES TO FOREGO
TWENTY SIX PERCENT. OF THE W.
SELECT CI.
WIDE EMISSION REDUCTIONS
IN THE LOWEST OF POSSIBLE
SCENARIO.
OF ALLOWED OVERSUPPLY TO FORTY
FIVE PERCENT OF THE W. SO I
WHITE EMISSION REDUCTIONS
IN THE HIGHEST POSSIBLE SERIOUS
WE HAVE YELLOWS REPORT TALKS BUT
THE LOWEST SCENARIO AND THE
HIGHEST SCENARIO. ARM.
I GUESS THE QUESTION COMES DOWN
TO HOW TO WEEK IN THE COMING
YEARS HOW DO WE CONTINUE TO
INCENTIVIZE EMISSION REDUCTIONS.
WHEN.
.
FACTUALLY EMISSIONS TODAY ARE
WELL BELOW THE CAP I MEAN THAT
WAS SORT OF THE.
CALL OF THAT QUESTION IS THAT
WHEN THEY'RE BELOW THE CAP RIGHT
NOW HOW DO WE HOW DO WE
INCENTIVIZE THAT. THAT
BEHAVIORAL CHANGE IN ARE
POLLUTING.
.
ENVIRONMENT.
I AM I THINK IT AND NUMBER
DIFFERENT WAYS YOU COULD THINK
ABOUT THAT QUESTION.
ONE OF WHICH IS AND WHAT'S THE
IMPACT ON WHAT'S HAPPENING OUT
THERE IN PLACES THAT AREN'T
UNDER THE CAP AND TRADE PROGRAM
YOU KNOW WHETHER WE. ARE WE
DOING TO EITHER PROVIDE AN
INCENTIVE OR SEND A MESSAGE TO
PEOPLE WHO ARE MAKING DECISIONS
ABOUT.
WHETHER TO. EXPAND THEIR. YEAH
URBAN AT FOOT PRINT TO OUR TO
LOOK FOR MORE COMPACT GROWTH
PATTERNS THAT WE COULD DO MORE
TO OUT MAKE IT POSSIBLE FOR
PEOPLE TO LIVE WITHOUT. HAVING
TO DRIVE EVERYWHERE THAT SORT OF
QUESTION TOM AND THAT'S A GOOD
ONE OF THE MOST INTERESTING
THING IS THAT WE'RE ACTUALLY
THINKING ABOUT RIGHT NOW IS ON.
HOW DO WE WORK WITH CITIES THIS
IN PARTICULAR WHO HAVE BEEN SOME
OF THE MOST?
EAGER TO PARTICIPATE IN THIS
PROGRAM AND AT THE SAME TIME.
HAVE THE GREATEST DIFFICULTY IN.
COMING UP WITH THE FINANCIAL
WHEREWITHAL.
NOT TO MENTION SOMETIMES LEGAL
TOOLS FOR HOW THEY CAN ACHIEVE
SOME OF THE THINGS THAT WE KNOW.
REALLY HAVE TO COME FROM LOCAL.
DECISIONS ABOUT LAND USE AND
TRANSPORTATION SO FAR THE ONLY
TOOL WE HAVE IN THE TOOLBOX IS
S. B. THREE SEVENTY FIVE. AND
HAT WAS HELPFUL ESPECIALLY IN
THE BEGINNING IN GETTING.
THE. PARTICULARLY THE MP HOST
TO THINK ABOUT.
THESE ISSUES AND IT AND TO WORK
ON SUSTAINABILITY PLANS BUT THE
EFFORTS IN THAT AREA HAVE EVER
REALLY STALLED BECAUSE WE DON'T
SEEM TO HAVE THE RIGHT. MIX OF
HOME RULES AND INCENTIVES TO TO
GET OUT OF THE KINDS OF. CHANGES
HAPPENING AT THE LOCAL LEVEL
THAT WE'D LIKE TO SEE IS THAT
SOMETHING THAT COULD BE A CREW
SOMEBODY CREATIVE. IN THE CITY
COULD APPROACH A ONE THE COVERED
ENTITIES ON THEIR OFFSETS AND
BECAUSE THEIR YOU KNOW THE CITY
WOULDN'T BE A COVERED ENTITY SO.
THEY AND THEY WOULD BE FASHION
TOGETHER SOME SORT OF PROPOSAL
MAYBE YOU'RE RIGHT MAYBE IT DOES
NEED LET HER A. A LEGISLATIVE
SWEETENER SO TO BE GLAD THAT
THAT WOULD BE WE'VE.
DIRECTING ARE ENCOURAGING CD'S
TO LOOK FOR IS THE AT THESE
OFFSETS THAT ARE GOING TO BE
ALLOWED EIGHT EIGHT PERCENT AND
THERE'S A POSSIBILITY AT LEAST
STILL TWENTY TWENTY. THAT THERE
WOULD BE AN OPPORTUNITY TO GO IN
THE SHORT TERM AND REALLY
REDUCE.
EMISSIONS IN
THE JURISDICTION BY BUT NOT ON
THE COVERED ENTITIES AND GIVE
THEM CREDIT IF THEY.
SO YOU'VE JUST PRODUCT ONE OF MY
VERY FAVORITE TOPICS WHICH IS
THE POSSIBILITY THAT THERE COULD
BE URBAN OFFSETS.
AND WHEN WE WROTE THE ORIGINAL
CAP AND TRADE ROLE ONE OF THE
THINGS WE PUT IN WAS A FORESTRY
OFFSET WHICH ONLY ALLOWS FOR
DOMESTIC FORESTRY PROJECTS TO
QUALIFY. BUT THERE'S A SPECIFIC
PROVISION IN IT FOR.
.
URBAN FORESTS TO BE INCLUDED
UNDER THE PROGRAM AND MY DREAM
WAS THAT.
SOME CITY WOULD COME UP WITH A
PLAN TO ARE BASICALLY FUND THEIR
STREET TREE AND ST PLANTING A
TREE PLANTING PROGRAMS. AND
MONETIZE THAT WORKING WITH SOME
OF ONE OF THE COVERED ENTITY IS.
IN THIS PROGRAM IT IT HAS BEEN
A COMPLETE FAILURE IT HAS
ABSOLUTELY NOT HAPPENED NOBODY'S
BEEN WILLING TO DO IT. AND WHAT
I'VE HEARD WHENEVER I'VE ASKED
THE QUESTION.
IS THAT.
THERE ISN'T ENOUGH CONFIDENCE ON
THE PART OF.
AT.
HYPOTHETICAL YOUR YOUR FAVORITE
OIL COMPANY OF THAT THE CITY
WOULD ACTUALLY AND MAINTAIN
THOSE TREES FOR A HUNDRED YEARS
AND THAT THEY WOULD REALLY BE
ABLE TO. HAVE A VIABLE OFF. UP
THERE IN THAT PROGRAM AND IT'S A
IT'S JUST KIND OF A GAP IN OUR
THINKING I THINK IT'S A FAILURE
OF.
OF IMAGINATION IN SOME WAYS
THAT WE HAVEN'T BEEN ABLE TO
COME UP WITH SOMETHING LIKE
THAT.
MOM CERTAINLY GUILTY OF THAT.
BROWN DO YOU HAVE ANY.
IMAGINATIVE COMMENTS
BUT THAT THAT.
REALLY I DON'T.
I DON'T THINK SO I THINK DOES
THE RELATING TO ADD I THINK JUST
TO THAT GENERAL IDEAS JUST SORT
KEEP. THINKING CAREFULLY ABOUT
NO ANY TYPE OF PROGRAM LIKE
THAT.
WHICH.
TYPES OF EMISSIONS THOSE SORT
OF LOCAL PROGRAMS MIGHT REDUCE
AND SELF WHEN YOU'RE TALKING
ABOUT FORESTRY THAT'S CLEARLY
SOMETHING THAT'S OUTSIDE OF THE
CAP YOU'RE TALKING ABOUT SORT OF
VEHICLE MILES TRAVELED. THAT HAS
A DIRECT IMPACT ON
TRANSPORTATION FUELS WHICH ARE
UNDER THE CAP AND SO SO THE NET
EFFECT ASSOCIATE WITH THOSE
ACTIVITIES MIGHT BE DIFFERENT
THAN OTHER ONES ALL YOUR
PREVIOUS REPORTS HAVE.
WARNED ASSAULT THAT THAT YOU
DON'T WANT TO DOUBLE DIP HERE
AND AND AND USE A REVENUES FROM
CAP AND TRADE TO DO THINGS THAT
ARE ALREADY REQUIRED UNDER. AND
THAT THE PROGRAMS THAT WE SHOULD
BE LOOKING IF WOULD BE CREATIVE
LOOK AT THESE OPT OPPORTUNITIES
ARE AT LEAST IN.
THE WITH DEAD FIFTEEN PERCENT OF
INDUSTRY TO STOP AND THE CAR AND
COVERED AND IT CAPITA ALSO
THESE.
HE SAID URBAN AREAS. I'M.
THE COLORED ON THE SIDE.
COVERED ENTITIES IF I UNDERSTOOD
YOUR OIGINAL QUESTION YOU WERE
ASKING ABOUT THE EFFECT OF LOW
PRICES WHAT HAPPENS TO
MITIGATION UNDER RELATIVELY LOW
PRICE AND.
WHICH IS WHERE WE ARE NOW. AND
AND I APPRECIATE THESE THESE
DISCUSSIONS WE JUST HAD BUT I
THINK IT'S IMPORTANT NOTE
THERE'S VERY LITTLE EVIDENCE
THAT THE LOW PRICES IN TODAY'S
MARKET ARE DRIVING SIGNIFICANT
EMISSION REDUCTION.
CAPS EVEN HIGHER THAN EMISSIONS
FOR THE PROGRAMS ENTIRE HISTORY
THAT WILL CHANGE UNDER THE
CURRENT REGULATIONS AS
AUTHORIZED BABY THREE NINETY
EIGHT.
BUT TO DATE THERE'S NOT MUCH
EVIDENCE FOR SIGNIFICANT CHANGE.
OKAY I'M.
WE'LL GO TO AYE. QUESTION SIX
WHICH IS THE THE.
APPENDIX E. WHICH PROVIDES THE
SOME PROVIDE THE BASIS FOR SOME
ASSUMPTIONS RELEASED THE
QUESTION
REQUEST.
FOR THE ASSUMPTION THAT THE
AIRPORT MAKES ABOUT THE MARKET
PRICES AND SPECIFICALLY CLAIMS
THAT THESE ASSUMPTIONS SHOULD
NOT BE USED AS A FORECAST OF A
MISSION RESPONSES.
TO ALLOW ITS PRICES SO WE DO
THAT ALL THE TIME THOUGH BUT
THAT WE'RE NOT SUPPOSED THERE SO
WE'VE BEEN WARNED. ARM.
SO I'D ON WHAT BASIS BASES
THERE'S THE AIRPORT MAKE SUCH AN
ANALYSIS AND AND WE WANTED. AB
HAVE YOU PROVIDE US WITH THIS
UNCERTAINTY TOOL ANALYSIS TOOL A
USED TO CREATE THE FIGURES AND
ANALYSIS IN THE APPENDIX
I EAT TO.
OR ONWARD WELL.
ACCORDING TO.
THE RESPONSES THAT WERE PREPARED
BY MYSELF HALF OF. HER DID
PERFORM AN UNCERTAINTY ANALYSIS
AND THE TOOL WAS POSTED ON OUR
WEBSITE ON THE SCOPING PLAN PAGE
IN DECEMBER AND THERE'S A
CITATION HERE. SAYS THE ANALYSIS
FOUND THAT POOR FOR THAT
PORTFOLIO OF MEASURES THE TWENTY
SEVENTEEN SCOPING PLAN HAS THE
HIGHEST CERTAINTY OF ACHIEVING
THE S. B. THIRTY TWO TWENTY
THIRTY TARGET.
AND THERE ISN'T ANY FURTHER
DISCUSSION IN THE PREVIOUS.
.
PARAGRAPH ABOUT.
HOW?
FIRST AS OPPOSED TO A.
.
AS OPPOSED TO ATTACKS
WHERE YOU HAVE TO TRY TO FIGURE
OUT WHAT THE RIGHT PRICE IS IN
THE CAP AND TRADE PROGRAM WE
DON'T NEED THE EXACT PRICE IN
ORDER TO.
AND IN EFFECT ASSUME THAT THE
THAT THE LOWEST CARBON THE
LOWEST COST REDUCTIONS WILL
HAPPEN. I'M THIS IS NOW BEYOND
MY LEVEL OUT OF CAT ABILITY TO I
ANSWER IN DETAIL IF YOU WOULD
LIKE ME TO. UP BRING UP ONE OF
OUR EXPERTS IN THE DESIGN OF THE
PROGRAM I WOULD BE HAPPY TO DO
THAT. I THINK BECAUSE WE MAY
WANT TO GET INTO QUESTIONS ABOUT
WHETHER THEY WERE SUBSTANTIATED
ASSUMPTIONS THAT WERE USED IN
THE APPENDIX OR ON SEVEN
SUBSTANTIATED OF. A ASSUMPTIONS
AND THEN THAT LEADS US DOWN THE
PATH REMEMBER WHAT WITH IT WE
DISAGREE AND I WOULD LIKE WHEN
WE BRING UP. OKAY AIRPORT PERSON
BUT I.
TO BROWN YEAR OUR DOCTOR BROWN.
DOCTORS ARE NOT DOCTORS
TOGETHER.
YEAH AYE I CAN'T REALLY SPEAK TO
THE KIND OF BASIS FOR SOME OF
THE ASSUMPTIONS ARE THIS OPTIONS
THAT WOULD END TO THAT
PARTICULAR ANALYSIS BUT.
CERTAINLY I THINK IT'S KIND OF
AN IMPORTANT QUESTION AND SERVE
A CRITICAL QUESTION ABOUT YOU
KNOW AGAIN WELL CAP AND TRADE
DELIVER. THE TYPES OF REDUCTIONS
THAT ARE EXPECTED IN THE SCOPING
PLAN ANSWER THIS QUESTION AROUND
THAT WHAT TYPES OF PRICES MIGHT
OCCUR DRIVE WHAT TYPES OF
EMISSION REDUCTIONS I KNOW
THERE'VE BEEN.
AYE AND YOU KNOW SOME ACADEMIC
ANALYSIS OF THIS ISSUE AND YOU
KNOW THAT THE THE SORT PRICE
RESPONSIVENESS IS DIFFERENT IN
AND THEIR ANALYSIS RELATIVE TO
WHAT THE AIRPORT INCLUDED IN.
AND IT'S SCOPING PLANET BUT I I
DON'T HAVE A LOT OF DETAILS ON
KIND OF YOU KNOW WHAT THEIR
ASSUMPTIONS ARE YEAH I THINK THE
QUESTION YOU KNOW THE SORT OF
EXPLICITLY SAYS YOU'RE NOT
SUPPOSED TO YOU SEE SOME.
THE FORECAST THEN YOU DO IT SO I
DON'T I DON'T KNOW MAHOOD
OPINION I'M I'M GUILTY TO SO. A.
SOME CLARITY AND YOU ARE THIS IS
IN THIS REGION NEAR SAHOTA WHO
HAS THE AWESOME RESPONSIBILITY
OF HAVING TO ANSWER YOUR
QUESTIONS. HOTEL WELCOME TO YOU
THE COMMITTEE HEARING.
AND THANK YOU AND GOOD MORNING
AND CENTER WIECKOWSKI MEMBERS OF
THE COMMITTEE. WHEN WE LOOKED AT
THE CAP AND TRADE PROGRAM WE
DIDN'T TRY AND PICK A PERFECT
PRICE FOR WHAT WE THOUGHT WOULD
BE THE RIGHT PRICE TO DRIVE ALL
THE MISSION REDUCTIONS. BECAUSE
IT'S VERY HARD TO DO THAT THAT
IS LIKE THE BILLION DOLLAR
CARBON TAX WHAT'S THE RIGHT
VALUE TO SET TO GET THE EXACT
EMISSION REDUCTIONS YOU NEED TO
ACHIEVE THE TARGET. SO THE
CARPENTRY PROGRAM WE HAVE A
RANGE OF PRICES WE HAVE THE
FLOOR AT THE AUCTION. WHICH IS
ABOUT FIFTEEN DOLLARS RIGHT NOW
ON INCREASES FIVE PERCENT PLUS
INFLATION EACH YEAR SO THERE'S A
CONTINUOUS PRICE SIGNAL TO THE
ECONOMY AND HAD REGULATED
BUSINESSES. THAT IF YOU'RE GOING
INVEST TODAY YOU WILL HAVE SEE
PAYOFF OVER THE FUTURE BECAUSE
THAT MEANS LESS ALLOWANCES
ANYONE UP TO PAY MORE FOR THOSE
ANNOUNCES IN THE FUTURE.
WHEN WE LOOK AT THE HIGH PRICE
WE LOOKED AT SOME EXISTING
INFORMATION THAT CAME THROUGH.
DOCUMENTATION THAT WE HAD FOR
THE PATHWAYS MODELING AND ALL OF
THE CITATIONS ARE WEBSITE THAT
LOOKED AT KINDS OF ACTIVITIES
AND TECHNOLOGIES AND THE COSTS
THAT WOULD COST. FOUR ACTUALLY
REDUCING EMISSIONS IF YOU
DEPLOYED EFFICIENCY OR NEW
BOILERS ARE NEW PIECES OF
EQUIPMENT.
WE FEEL CONFIDENT THAT AT EIGHTY
FOUR DOLLARS WHICH IS THE
CURRENT HIGH PRICE THE SOFT
CEILING PRICE IN THE PROGRAM.
YOU WOULD GET THE EMISSION
REDUCTIONS ACROSS ALL OF THE
SECTORS THAT ARE IN THE PROGRAM
TO ACHIEVE THE TWENTY THIRTY
TARGET AND WE MIGHT GET A AT. A
TOTAL OF THIRTY DOLLARS OR IT
MIGHT BE CLOSER TO THE FLOOR
PRICE MIGHT BE A LITTLE BIT
HIGHER WE TOOK THAT RANGE
APPROACH BECAUSE YOU CAN IMAGINE
IN A COUNTY WIDE PROGRAM. THE
OPPORTUNITIES TO REDUCE ACOSTA
REDUCES GONNA VARY BY INDUSTRY
IT'S NOT JUST A SINGLE PRICE FOR
ALL INDUSTRY IT COULD BE
DIFFERENT FOR THE COLLECTIVE
INDUSTRY. AND SO WE LOOK AT THAT
RANGE AND WE'VE TIME FORECAST
WHAT WHAT M. FOR THE WHOLE SUITE
OF COMPANIES IN THE PROGRAM WHAT
THAT RANGE NEEDS TO LOOK LIKE.
KNOWING THAT ANYWHERE IN THAT
POINT IS ACTUALLY THE RIGHT
PRICE WHERE YOU'LL SEE THE
REDUCTIONS THAT YOU THAT YOU
NEED TO ACHIEVE. AND SO ALL THE
DOCUMENTATION AND ALL OF THE
CITATIONS ARE INCLUDED ON OUR
WEBSITE AND IT INCLUDES IN THE
MODELING DOCUMENTATION NOT ONLY
THE TECHNOLOGY THAT WE WOULD SEE
AS BEING AVAILABLE AT THOSE
PRICES BUT THE ACTUAL LITERATURE
RESEARCH BEHIND THOSE PRICES. MY
WRONG I THOUGHT THE MODELING
INFORMATION WAS FROM THE JANUARY
TWENTY SEVENTEEN TRAFFIC PLAN
NOT THAT DECEMBER PLAN TO REVIEW
UPDATE. OR
HAVE YOU UPDATED THE THE THE
MALL ON THE SPREADSHEET OF.
OF INFORMATION WE DID HAVE TO
UPDATE IT AND THAT WAS IN
RESPONSE TO NEW INFORMATION YOU
CAN IMAGINE THAT THE SCOPING
PLAN TOOK TWO AND HALF YEARS TO
DEVELOP. AND WE WANTED TO KEEP
UP WITH THE TIMES AND NEW
INFORMATION BECAME AVAILABLE
OVER THAT TWO AND A HALF YEAR
PERIOD WE GOT ADDITIONAL
INFORMATION FROM OUR ENERGY
AGENCIES. THAT I AM YOU KNOW THE
RPF PROGRAM WAS OVER PERFORMING
AND SO WE HAVE TO ACCMMODATE
THAT MODELING WE ALSO THE
LEGISLATIVE DIRECTION AB THREE
NINETY EIGHT. OF THE REFINERY
MEASURE THAT WE INITIALLY
PROPOSED IN JANUARY WAS NOW
GOING TO GO AWAY AND THOSE
REDUCTIONS WOULD BE REALIZED THE
CAP AND TRADE PROGRAM. SO WE
DON'T HAVE TO UPDATE WHAT WE PUT
OUT IN JANUARY WITH NEW MODELING
THAT WE PUT OUT AND AT THE END
OF NOVEMBER AND DECEMBER.
MR CALLING LIKE.
THANK YOU MR CHAIRMAN.
WITH RESPECT TO COUPLE THE
POINTS IT'S JUST BEEN RAISED I
THINK LIKE IT'S IMPORTANT
CLARIFY.
THIS IS THE ONLY PART OF THE
SCOPING PLAN WILL TALK ABOUT
APPENDIX E. WEATHER'S ANY
DISCUSSION OF HOW THE MARKET
MIGHT PERFORM RECOGNIZING AGAIN
THAT THERE WILL BE DEBATES OVER
HOW THIS WILL UNFOLD THAT'S WHY
IT'S SO IMPORTANT TALK ABOUT
THESE ISSUES.
ARE THERE IS NOTHING IN THE
SCOPING PLAN DOCUMENT THAT
IDENTIFIES THE SOURCE OR NATURE
OF THESE ASSUMPTIONS.
A MINNESOTA JUST SAID THAT THE
PATHWAYS MODELING ARM CONDUCTED
FOR THE SCOPING PLAN CONTRIBUTED
TO THAT I JUST WANNA LET YOU
KNOW THE PATHWAYS MODEL WHICH IS
THE MAIN TECHNICAL MODEL THE
BOARD USED ANALYZE THE SCOPING
PLAN. EXPLICITLY DOES NOT
INCLUDE CAP AND TRADE IN WAS NOT
USED TO MODEL CAP AND TRADE. HOW
CITING SOME ADDITIONAL
DISCUSSION MIGHT BE WARRANTED
LAST THING TO SAY YOU ASKED
ABOUT THE UNCERTAINTY ANALYSIS
TOOL THE VERSION OF THE TOOL
THAT IS ONLINE AND THAT'S
INCLUDED IN IN THE PORTS
RESPONSE IS IN FACT THE OLD
VERSION THAT WAS USED? FOR NOT
THE FINAL SCOPING PLAN BUT THE
ONE THAT WAS CREATED MUCH
EARLIER BEFORE THESE CHANGES
THAT MISTER HOELTER REFERRED TO
TOOK PLACE OTHER ISN'T ACTUALLY
THAT INFORMATION YET IN THE
PUBLIC COMING.
SO HOW TO.
AND CERTAINLY AND I AND I DON'T
WANT TO DEVOLVE INTO A DEBATE
AND.
I WOULD JUST SAY THAT M. WOULD
YOU LOOK WHEN WE LOOKED AT
ALTERNATIVES IN THE SCOPING PLAN
WE LOOKED AT AN ALTERNATIVE
CALLED ALTERNATIVE ONE. IN
THAT'LL TURN IT WE LOOKED AT A
PLAUSIBLE PATH TO GET TO THE
TWENTY THIRTY TARGET. IN THE
ABSENCE OF A CAP AND TRADE
PROGRAM AND SO IN LOOKING AT
THAT ALTERNATIVE WE DID HAVE TO
LOOK AT THE TECHNOLOGIES THAT
WOULD BE AVAILABLE ON THE COST
OF THE TECHNOLOGIES ACROSS THE
DIFFERENT INDUSTRY. ACROSS THE
DIFFERENT SECTORS OF THE ECONOMY
AND SO THAT MODELING INFORMATION
DOES GIVE US INSIGHTS INTO THE
PRICES AND TYPES OF TECHNOLOGY
THAT WE WOULD SEE WE DON'T KNOW
EXACTLY TO WHAT EXTENT THAT
TECHNOLOGY WILL BE DEPLOYED IN
EACH SECTOR. BUT WE DO GET A
SENSE OF THE RANGE OF COSTS FOR
THAT TECHNOLOGY NOT INFORMATIONS
ON THE WEBSITE IF THE DOCUMENT
HAS AM AN INCORRECT CITATION
WOULD BE HAPPY TO FOLLOW UP AND
PROVIDE THE MORE RECENT ONE.
BECAUSE THAT DATA WAS MADE
AVAILABLE IN NOVEMBER. IT'S JUST
YOU KNOW WE'RE MOVING INTO THIS
AIR WERE WE REALLY HAVE A
LEGISLATIVE ADMINISTRATIVE
PARTNERSHIP MEAN WE UNDERSTAND
AB THIRTY TWO SAID.
S. NICHOLS YOU GUYS DECIDE THE
PROGRAM NOW WERE IN A IN OUR
REQUIREMENTS ARE FOR OVERSIGHT
IS TO MAKE SURE THAT WERE ME
WERE MOVING ALONG WATER THAT.
TARGETS THAT WHAT IS THE
ASSUMPTIONS THAT ARE BEING MADE
AND AND CAN WE LOOK AT THAT AND
SHARE IT. YOU HAVE PAID ADVISORY
TECHNICAL BOARD IS GONNA BE
REVIEWING EVERYTHING SO OFTEN WE
IS THAT THE LEGISLATURE WANT TO
BEAT MAKE SURE THAT WE ASKS.
THE RIGHT QUESTIONS AND GET
THAT.
THAT ARE RIGHT NOW BEFORE WE
ACTUALLY IT'S ONLY JANUARY WAS A
FIFTEENTH.
WE'RE JUST IN THE RIGHT NOW
TWENTY EIGHTEEN NOW WE'VE GOT
EIGHTEEN NINETEEN AND TWENTY.
DOCTOR BROWN YOU HAD ANYTHING
THAT.
OKAY I'M.
LET'S MOVE ON.
INSTEAD.
IBM.
EVEN IF A THREE NINETY EIGHT.
.
TALKS ABOUT THE SOCIAL COST OF
CARBON AND NOTHING.
AND SO.
I GUESS TOOK OUR QUESTION IS
WHAT IS THE MINIMUM OR MAXIMUM
PRICE THE LEGISLATURE CAN EXPECT
THAT THE CEILING. UP WILL NOT BE
SET BENEATH R. BUFF.
AND AND.
HOW DOES A HARD PRICE CEILING
IMPACT CALIFORNIA'S CURRENT
LINKAGE LINKAGES BECAUSE WE KNOW
THAT WE HAVE?
YOU KNOW CONNECTIONS WITH A
QUICK BACK AND WHETHER THAT'S
COULD BE DISRUPTIVE IF WE.
IF WE SET A HARD PRICE.
AND HAVE YOU BEEN TALKING WITH
THAT.
FRENCH YEAH NAY THE ENDS AND WE
HAVE AND THE ONTARIANS ABOUT
THAT.
THE PRICE CEILING AND IN ORDER
TO PRESERVE THOSE LEAGUE.
YES WE WE CONTINUE TO HAVE.
A VERY REGULAR AND FREQUENT
COMMUNICATIONS WITH OUR PARTNERS
IN THE PROGRAM AND THEY'RE WELL
AWARE OF THE LEGISLATION AND
ALSO OF HOW WE'RE THINKING ABOUT
APPROACHING. AS THE RESPONSE TO
THE LEGISLATION BUT I'M NOT
PREPARED TO TELL YOU TODAY
EXACTLY HOW WE'RE GOING TO DO IT
ECAUSE THAT'S PART OF THE.
PROPOSALS THAT WHERE THEY WERE
WORKING ON RIGHT NOW BUT.
I THINK IT'S FAIR TO SAY THAT
OUR PARTNERS UNDERSTAND THE
REASONS WHY WE'RE DOING THIS
AND.
THEY WILL. DO EVERYTHING IN
THEIR POWER TO MAKE SURE THAT
THEIR PROGRAMS MATCH UP WITH
OURS AND THAT WE CAN CONTINUE TO
WORK TOGETHER.
DOCTOR BROWN.
DON'T HAVE MUCH TO ADD OTHER
THAN TO STICK AGAIN SORT OF
HIGHLIGHT.
THEY SORT OF IMPORTANCE OF THIS
AND THIS DECISION AS URBAN AREA
FOR FUTURE LEGISLATIVE OVERSIGHT
ONCE CARD DOES NOT PUT SOME
PROPOSAL FORWARD THAT THE
LEGISLATURE KNOW EVALUATE THAT
PROPOSED PRICE AND. ENSURE THAT
IT'S KIND OF BALANCING THE SORT
OF THE MISSIONS CERTAINTY VERSUS
COST TRADE OFF IN A WAY THAT THE
LEGISLATURE IS COMFORTABLE WITH.
ALLOWED ONLYI THINK AGAIN
PRODUCTIVE BROWN'S COMMENTS THIS
IS A REALLY IMPORTANT ANALYTICAL
ISSUE AND I THINK IT'S GONNA BE
VERY IMPORTANT FOR THE BOARD TO.
ANALYZE THE SERIOUSLY IN THE
FORTHCOMING REGULATIONS AND I
LOOK FORWARD TO SEEING.
DID YOU INDICATE WHAT THE
CURRENT APC R. PRICE WAS HE
SAID.
DO YOU KNOW THAT IS RIGHT NOW.
IT'S ABOUT FIFTY SIXTY TWO SIXTY
THREE DOLLARS.
WITH THIS IN THIS RANGE OF WITH
THE CEILING BE SET BELOW THAT.
I AM IN THE RESPONSE THAT WE
PROVIDED WE INDICATE THE AB
THREE NINETY EIGHT INCLUDES
SEVERAL PROVISIONS AND
CONSIDERATIONS AND SETTING THE
PRICE CEILING POST TWENTY
TWENTY.
ONE OF THOSE CONSIDERATIONS IS
THE CURRENT LEVEL OF THE PRICE
CONTAINMENT RESERVE.
AND SO WE'VE INDICATED THAT WE
BELIEVE SIXTY DOLLARS WOULD BE
TOO LOW RELATIVE TO THAT PRICE
CEILING R. RELATIVE THAT CAN
COST CONTAINMENT MECHANISM FOR
POST TWENTY TWENTY. AND WE
ANALYZE THE PRICE OF EIGHTY FOUR
DOLLARS IS THE HIGH IN THE
SCOPING PLAN.
AND SO WE ARE INDICATING NOW IN
THIS DOCUMENT THAT WE DON'T
THINK ANYTHING BELOW SIXTY WOULD
BE. APPROPRIATE TO MAKE SURE
THAT WE KEEP THE REDUCTIONS WE
NEED THAT WOULD HOLD TRUE IN THE
INTERIM.
EIGHTEEN NINETEEN TWENTY BEFORE
WE GET TO GET AS THE WORLD OF AB
THREE NINE EIGHT.
I.
YOU KNOW OTHER QUESTIONS LET'S
MOVE ON. TO.
EIGHT.
THE FIRM DECLINING CAP IN THE
CAP AND TRADE PROGRAM IN THE
STRICT OVERALL EMISSIONS LEVELS
THAT DECREASE EACH YEAR.
I GUESS THE CONCERN IS.
AB THREE NINE EIGHT INSTRUCTS
CARP TO CREATE THIS HARD PRICE
CEILING FOR THE CAP AND TRADE
AND IF ALLOWANCES ARE SOLD
THROUGH THE CEILING MECHANISM.
OBTAIN A TON FOR TINY MISSION
REDUCTIONS
THE CASTLE UP THE EMISSIONS
ABOUT THE CEILING.
THEN WE ASKED IF IF CARP AD
THINKS IT. WOULD BE A SOURCE FOR
THOSE TEN WHAT WOULD BE THE
SOURCE FOR THOSE TEN FOR TEN
REDUCTIONS.
AND WE SAID IT WAS CRITICAL.
SO I GUESS I DON'T HAVE THE TIME
FOR TIME REDUCTION WHERE THAT
WOULD COME.
BUT THAT'S TRUE.
HE SAID HE IS LIKELY COME FROM
NATURAL IN WORKING LANDS.
AND ENHANCE SEQUESTRATION
FORESTRY. R. WHAT WE HAVE TO
LOOK OUTSIDE THE COVERS SECTORS
RIGHTS THOUGH THESE ARE JUST
THINK THESE ARE JUST NAMES OF
WHAT THOSE SECTORS ARE.
OF THAT WE'RE GONNA TRY TO YOU
KNOW AGAIN TO ACHIEVE A BALANCE
OVERALL IN THE PROGRAM BUT.
.
I GUESS I WANNA SAY IF I NEED IT
EVEN IF I COULD ANSWER THE
QUESTION TODAY I PROBABLY
WOULDN'T. JUST BECAUSE WE
HAVEN'T DONE ALL THE WORK THAT
NEEDS TO BE DONE TO PUT THIS
INFORMATION OUT SO I DON'T WANT
TO SPECULATE AND BECAUSE. OF
PEOPLE TO PANIC ABOUT WHAT WE'RE
ABOUT TO DO TO THEM UNTIL WE
HAVE SOMETHING. THAT WE CAN
REALLY ROBUSTLY STAND BEHIND.
THAT'S MY JOB NOT CONFISCATING
THE JUST GETTING HIS.
SOME.
DOCTOR BROWN.
YEAH I THINK I THINK IT'S GONNA
GET A GOOD QUESTION GIVEN THE
WAY AB THREE NINETY EIGHT IS
LAID OUT. AND THE PRICE ELAINE
AND COME THE DIRECTION THAT THE
ANY MONEY THAT'S GENERATED FROM
SELLING COMPLIANCE INSTRUMENTS
AT THE PRICE CEILING WOULD BE
USED TO. OFFSET THOSE REDUCTIONS
SOMEWHERE ELSE I DON'T WANT JUST
ONE ISSUE THAT WE MIGHT WANT TO
FLAG FOR YOU LAWS JUST THINKING
ABOUT WHAT THE LEGISLATIVE IT
LEGISLATURE'S ROLE IN THIS
DECISION WOULD BE.
YOU KNOW WHAT WHAT WHAT IS THE
PROCESS I MEAN THAT THIS IS WHEN
SORT OF ADDITIONAL MONEY IS
COMING. INTO THE STATE OF THE
BILL DOESN'T SORT OF SPECIFY
EXACTLY YOU KNOW. YOU KNOW WHAT
WHAT THE LEGISLATURE'S ROLE IS
IN A KIND OF DIRECTS THE BOARD
TO FIND WAYS TO FIND THOSE
REDUCTIONS BUT. I IN OUR VIEW
THIS IS KIND OF A A LEGISLATIVE
ROLE IN APPROPRIATING THAT MONEY
IN THINKING ABOUT SORT WHERE
THAT MONEY SHOULD BE GOING TO
JUST ONE IS FOR A FLAG THAT. I
AS A LONG TERM ISSUE THE
LEGISLATURE TO TO BE THINKING
ABOUT SO ARE YOU SAYING THAT
WHEN THE THE BUDGET SEPT TWO
REVIEWS THE EXPENDITURE PLAN FOR
CAP AND TRADE. PROGRAMS THAT WE
SHOULD BE LOOKING.
OVER A KEEN EYE TOWARDS THESE
THE REDUCTIONS TONFA TONER DATE
THAT THE AREAS.
I THINK IT'S MORE JUST IN SORT
OF PLANNING FOR IF WE GET INTO A
SITUATION WHERE I WERE AT THE
PRICE CEILING WHICH WE ARE
CLEARLY NOT CLOSE TO THAT RIGHT
NOW. ON BUT IF WE ARE GONNA WHAT
WHAT WHAT IS THE PROCESS FOR
DETERMINING WHO'S DETERMINING.
THAT OF HOW THAT MONEY IS USED
ARM AND TO THE EXTENT IT'S BEING
USED FOR EMISSION REDUCTIONS AND
WHERE THOSE RATE REDUCTIONS ARE
OCCURRING.
YEAH WHAT IS THAT DOES DOES
THAT PROCESS RUN THROUGH KIND OF
THE BUDGET PROCESS WHERE THE
LEGISLATURE IS PROVIDING
DIRECTION TO THEY ARE BE ON HOW
TO HOW TO USE THAT MONEY IS
CERTAINLY OF SOME OTHER PROCESS
THAT USED I THINK. I JUST ON IN
THERE ISN'T SORT OF TOTALLY
CLEAR TO US AT LEAST IN THE BILL
AND JUST WANT ONE THING WE
WANTED TO SORT OF FLAGS WERE
GOING FORWARD TO FOR THE
LEGISLATURE TO THINK.
I GOT BOTH COMMITTEES
THE LEGISLATIVE. SUBSTANTIVE SO
WE CAN AT LEAST GET ALL OF
THESE.
DR COHN MORE DO YOU HAVE.
OPUS.
IF ANYTHING THE ADAM JUST VERY
BRIEFLY THAT THE REQUIREMENT IN
AB THREE NINETY EIGHT IS TO
PRODUCE REDUCTIONS THAT ARE
OUTSIDE OF THE CAP AND TRADE
PROGRAM AND THAT MEANS BOTH
SECTORS THAT ARE IN THE STATE
BUT NOT COVERED BY THE PROGRAM
LIKE THE NATIONAL WORKING LAND
SECTOR. BUT ALSO POTENTIALLY OUT
OF STATE EMISSION REDUCTIONS AND
THAT'S
JUST SOMETHING TO BE MINDFUL OF
EYES THE BOARD PLANS AND IS THE
LEGISLATURE REVIEWS THESE ISSUES
THAT MANY OF THESE REDUCTIONS
MAY NEED TO BE FOUND OUT OF THE
STATE DEPENDING AGAIN ON WHAT
THE BOARD CEASES FEASIBLE AND
AND. THAT'S JUST AND ELEMENTS OF
THE DISCUSSION THAT THAT WILL
COULD COME UP IN THE FUTURE OF
THE MARKET EVER REACH THOSE
LEVELS THIS IS AN AREA THAT WE
KNOW WOULD BE EXTRAORDINARILY
ALLEN CONTROVERSY. WITHIN THE
STATE I WOULD AMONG OUR VARIOUS
STAKEHOLDERS BUT IT'S EXACTLY
HOW OTHER JURISDICTIONS HAVE
APPROACHED ITEM THE HIGH COST OF
ACHIEVING REDUCTIONS OF NORWAY
FOR EXAMPLE. OF YOU KNOW HAS
BEEN INVESTING VERY HEAVILY AND
VERY.
EFFECTIVELY I WOULD SAY IN.
FINDING WAYS TO KEEP CARBON IN
THE FORESTS IN. US SOUTH
AMERICA.
THEY FIGURE HIGH NEARED IN THAT
EFFORT BECAUSE THEY CAN'T REDUCE
THEIR OWN EMISSIONS FROM THEIR
OWN DOMESTIC SOURCES ANY FURTHER
WITHOUT. HURTING THEIR ECONOMY
AND THAT'S SO THAT'S HOW THEY'RE
APPROACHING IT.
THIS IS NOT SOMETHING THAT HAS
SO FAR MET WITH MUCH ENTHUSIASM
FROM A MOST OF OUR STAKEHOLDERS
THAT WE'VE HAD SOME HEARINGS ON
THAT I GUESS THE QUESTION WOULD
BE WHAT OUR FRIENDS IN ONTARIO
AND. QUEBEC MAY HAVE ON THE
KISSER CERTAINLY.
INFO.
DESTRUCTIVE ON THE WHAT WERE
THEY WANT TO SEE DRIVE
REDUCTIONS OCCUR MANNER IS SOME
ALLOWANCE FOR OFFSETS.
AND IT REDUCE SOME YES
THE TICKET.
CENTER NIELSEN.
ALL OF THIS CONSIDERATION THE I
HAVE WON'T TURN MY CALLED ARE
FORCED INTO WILDLINGS.
OKAY.
I HAVE.
CARP TAKEN A LOOK AT THE IMPACT
OF THESE CATACLYSMIC FIRES.
FOR DECADES WE'VE JUST THINGS
GROW UP IN.
BUT A FIRE OUT AS QUICK AS YOU
CAN.
IT BUT MOSTLY THE ACCUMULATION
OF FUEL.
AND WE'VE SEEN NOW CATACLYSMIC
FIRES.
ALL OVER THE.
NOW IN THE URBAN AREAS.
SOUTH COAST.
AND SHADOW ROSE AND THIS YEAR.
IS THAT BEING TAKEN INTO
ACCOUNT THAT THIS IS ANOTHER
POLICY OF THE STATE.
AND MAYBE NOT WITHIN THE DIRECT
AUTHORITY FOR CAR BUT YOU DO
HAVE SOME IN TERMS OF HOW WE
MANAGE OUR FORCE IN A WILD WAY.
WE ARE ACTIVELY INVOLVED WITH
THE CAL EPA AND THE RESOURCES
AGENCY AND DEVELOPING A CARBON
FOREST PLAN FOREST CARBON PLANT.
OUTSIDE THAT'S DESIGNED TO MEET
THE GOVERNOR'S DIRECTION THAT WE
SHOULD BE RESTORING OUR FORESTS
AS A REPOSITORY OF CARBON
INSTEAD OF.
IN THEIR CURRENT SITUATION
WHERE THEY ARE CONTRIBUTING TO
THE TO THE PROBLEM IT'S A
CHALLENGING EFFORT ESPECIALLY
BECAUSE OF.
AT PASSED HISTORY OF HOW WE
FOUGHT FIRES AND HOW WE'VE
MANAGED ARE FORCED LANDS. BUT IT
IS DEFINITELY SOMETHING THAT IS
GONNA BE A*.
SEEING INCREASED ATTENTION IN
THE COMING YEAR WELL I THINK WE
SEE NOW THAT IT'S NOT JUST A IF
YOU WILL RURAL PROBLEM IT'S
UNEARNED PROP TRY.
THEN WHAT GOT INTO.
NORTH SANTA ROSA DEVASTATED AND
THAT A HORSE HEALTH COAST AND
IT'S NOT JUST AND IT IS A LIFE
AND SAFETY ISSUE IT'S ALSO OUT
AN AIR POLLUTION ISSUE WHICH IS
WITHIN OUR JURISDICTION AS WELL
SO WHERE IS REVENUE TO SOCIAL
COST HOW DO YOU.
WAY AN ACCOUNT FOR SOCIAL COST.
AYE WELL WHERE I REQUIRED TO
LOOK AT THAT IN THIS.
AND AS A RESULT OF THREE NINETY
EIGHT TO LOOK AT THE SOCIAL COST
OF CARBON. AYE AND WE HAVE BEEN
CONTRIBUTING TO SOME.
EFFORTS TO PUT A BETTER NUMBER
AROUND WHAT THAT REALLY MEANS.
AYE AND IT'S SOMETHING THAT WE
WOULD LIKE TO BE ABLE TO USE AS
A BENCHMARK FOR OUR EFFORTS
ABSOLUTELY.
I THINK I THINK THE SENATOR
FIGHTING IF I MAY KNOW WE TIP
TRADITIONALLY WE LOOK AT THE
SOCIAL BECAUSE I LIVE NEXT THE
REFINERY ELEMENTS OF THE FREEWAY
BACK AT ALL THIS OTHER BAD STUFF
THERE. EITHER FOREST FIRES COULD
BE AN.
.
COLIC AREA OF SANTA ROSA
REVEREND IS AN OFFICE SAID THAT
SOCIAL COSTS OF.
ONE OF THE POLLUTION MAPLE THAT
WERE THERE WITH THE MASK WAS
ALSO ON ON ON TV DE. AYE
MINUTES.
IT'S A LEASE BEYOND THE.
IMMEDIATE IDEA THAT I THOUGHT
THAT THE AIRPORT BE LOOKING AT
IS WHAT IS THE IMPACT AS THE
FIRES GOING ON RIGHT THERE
DEVASTATION AFTER THEY BUT
MISTER CHAIRMAN TO THE THERE IS
A SOCIAL COST AS WELL AS. WHAT I
CALL DISPLACEMENT THEM A IN
CERTAIN AREAS LIKE THE SOUTH
COAST AND AND SONOMA COUNTY?
MANY PEOPLE ARE NOT GOING TO BE
ABLE TO.
REBUILT.
IT'S GONNA CHANGE THE SOCIAL.
AND AND AND ECONOMIC
TO ASIAN IN IN THOSE AREAS.
BECAUSE OF THE COST OF LIVING IN
THE AREAS AND ETCETERA AND
THEY'RE THEY'RE PLANNING
REQUIREMENTS.
ALRIGHT I THINK QUESTION NINE
ON.
ALLOWANCES WE'VE SORT OF TALKED
ABOUT THAT.
WELL I GUESS I WANT TO LOOK AT
THIS THE SCOPING PLAN SHOWS
THAT.
FLUCTUATIONS
A OVER THE LAST
YEAR FOR THE CAP AND TRADE FORMA
HUNDRED NINETY ONE METRIC TONS.
OF CARBON TO TWO HUNDRED NINETY
SIX METRIC TONS IN THE FINAL
DETERMINATION HAS BEEN AT TWO
HUNDRED THIRTY SIX SO WE HAVE.
AND WE TALKED SHORT LIVED
CLIMATE. POLLUTANTS ZERO.
EMISSION VEHICLES SORT OF
CONSTANT
AND MAYBE THIS IS MADE THE. CAP
AND TRADE HAS THIS BIG
FLUCTUATION OF NUMBERS LIKE ACID
QUESTION AS.
IF WE HAVE AN EXPLANATION ON
THAT.
I'M NOT SURE WHICH THE
FLUCTUATION IS THAT YOU'RE
REFERRING TO SORRY WE TOOK WE
TALKED BUT THE CUMULATIVE AMOUNT
OF GREENHOUSE GAS EMISSION
REDUCTIONS EXPECTED FROM THE CAP
ANDTRADE OH I SAID. WE THOUGHT
YOU KNOW I HAD.
YOU KNOW PRETTY STEADY WOULD
ZERO EMISSIONS PRETTY STEADY
WHICH SHORT LIVED CLIMATES BUT
BUT THERE WAS AS YOU WERE GOING
THROUGH THE JANUARY. A AMOUNT
YOU'VE LANDED ON TO THIRTY SIX
AND HOW HE THE JUSTIFIED AS. I
THINK THE BIGGEST CHANGE HAS TO
DO WITH THE QUESTION OF WHETHER
THERE WAS GOING TO BE A DIRECT
REFINERY EMISSIONS REDUCTION
REGULATION OR WHETHER WE WERE
GOING TO CONTINUE TO RELY ON CAP
AND TRADE. AS THE PRINCIPAL WAY
OF REDUCING EMISSIONS FROM THE
OIL AND GAS.
SECTOR.
THAT'S THAT WAS THE PRINCIPAL
EXPLANATION FOR WHY THERE WAS A
DIFFERENT A NUMBER.
TO UNDERSTAND YOU HAVE A
QUESTION ON THIS.
YEAH UP.
ANYTHING TO ADD A. DOCTOR BROWN.
MET THINK THERE'RE IT SEEMS TO
US BASED ON OUR REVIEW THEIR A
AND THE CHANGE AND THEY
POLICIES THAT WERE INCLUDED IN
THE A SCOPING PLAN AS IT WITH
THE ADOPTION AB THREE NINETY
EIGHT MARIN REMOVING THE
REFINERY MEASURE SORT OF. MEANT
MORE WOULD FALL ON CAP AND TRADE
I KNOW WHERE THE OTHER
SIGNIFICANT CHANGES JUST IN THE
MODELING THAT CARB IS MENTIONED
IN SOME OTHER DOCUMENTS RELATES
TO. ABOUT WHAT AND MISS
REDUCTIONS ARE GOING TO BE
ACHIEVED THROUGH THE CURRENT OUR
PS R. THREE TWENTY TWENTY. AND
NOW SINCE THAT'S KIND OF OVER
PERFORMING WHAT THE EXPECTATIONS
WERE BEFORE THAT MEANS KIND OF
FUEL EMISSIONS ARE ALREADY YOU
LOWER. THAN.
KIND OF WHAT WHAT WE WERE
EXPECTING BEFORE EXECUTIVE
CHANGES BASICALLY YOU KNOW THE
AMOUNT THE CAP AND TRADE IS
GOING TO HAVE TO DO SO THERE
THERE ARE GONNA BOTH. AT SEEMS
KIND OF POLICY CHANGES
PROGRAMMATIC CHANGES THAT
AFFECTS YOU KNOW WHAT ROLE CAP
AND TRADE HAS AS WELL AS JUST
SOME AYE CHANGES IN THE
ASSUMPTIONS AROUND THE MODEL IN.
A ABOUT KIND WHERE EMISSIONS
WOULD OTHERWISE BE IN WHAT
COUNTRY WOULD HAVE TO MAKE UP
THIS SECOND CERN YOU THE
REFINERY.
.
PORTION BEING PULLED OUT.
I AM I MEAN I I THAT WAS KIND
OF-YOU KNOW PART OF THE A BILL
THAT
WAS.
ADOPTED I THINK I MEAN I THINK.
BASED ON THE A A NATIONAL ALL OF
THE ALTERNATIVES THAT
WERE OUT THERE SO I THINK FROM
FROM OUR PERSPECTIVE NIKOLAEVICH
ACHIEVING GREENHOUSE GAS
REDUCTIONS. IN THE MOST COST
EFFECTIVE WAY TO RELY MORE
HEAVILY ON SOME OF THE
ALTERNATIVE MEASURES LIKE CAP
AND TRADE.
HAS LOT OF BENEFITS IN THAT WAY.
PRESCOTT TO HIDE DOCTOR CALLING
WORD.
I JUST A BRIEF REMARK AYE
ECHOING.
BOTH OF THE COMMENTS YOU HEARD.
THE WAY THESE EMISSION
REDUCTION PROJECTIONS WERE
CALCULATED WAS OF A BASELINE
SCENARIO WAS GENERATED AND THEN
THE DIRECT MEASURES THE
TRADITIONAL REGULATORY PROGRAMS
WERE FACTORED IN. AND THE GAP
BETWEEN WHAT THOSE NON CAP AND
TRADE MEASURES COULD DO AND THE
TARGET IS THE NUMBERS YOU'VE
QUOTED IN YOUR QUESTION HERE.
AND SO I THINK IT'S IMPORTANT
UNDERSTAND THIS BECAUSE
DESIGNING A CAP AND TRADE
PROGRAM THAT COULD REDUCE THOSE
EMISSIONS WILL TAKE. ANALYSIS
AND THOUGHT WHICH AGAIN THE
BOARD HAS AS PROMISED TO PRODUCE
BUT NONE OF THAT ANALYSIS IS IN
THE PLANNED THESE NUMBERS YOU
SEE HERE ARE THE RESIDUALS.
THE GAP THAT'S LEFT TO BE FILLED
THAT'S ASSIGNED TO CAP AND TRADE
BUT IT IS NOT THE PRODUCT OF AN
ANALYSIS THAT SAYS. THIS
PARTICULAR MARKET DESIGN UNDER
THESE CONDITIONS WILL PRODUCE
THIS AMOUNT OF EMISSION
REDUCTIONS
SO YOU THINK THAT IS THE
MODELING WE ABLE TO SAY.
THERE.
FLOOR GOES UP TO IN.
NEXT YEAR SIXTEEN DOLLARS AND
SOMETHING WHATEVER THE AMOUNT IS
WE'RE ABLE TO USE ANALYTICAL
TOOLS TO DETERMINE HOW.
ROBUST THE THE MARKET WILL BE OR
WHERE WE EXPECTED AT AT THIS
TIME THE CEMENT INDUSTRIES IT'S
GONNA TRIGGER THEM TO YOU KNOW
MAKE THE CHANGES BECAUSE THIS
COULD BE TO.
EXPENSIVE FOR THEM TO PAY FOR
THE ALLOWANCES SO THERE ARE
STANDARD ECONOMIC TOOLS ONE CAN
MAKE ASSUMPTIONS ABOUT THE PRICE
RESPONSIVENESS OF EMISSION
REDUCTIONS AT DIFFERENT PRICES
IN THE MARKET.
AND WHEN WE WERE DISCUSSING
EARLIER THE ASSUMPTIONS IN
APPENDIX II THAT'S THE ONLY
PLACE WHERE THERE'S SORT OF A
HINT AT WHAT THE BOARD MIGHT
HAVE BEEN THINKING ABOUT THIS
AND I THINK. A LOT MORE CLARITY
IS NEEDED TO PROPERLY UNDERSTAND
THOSE ASSUMPTIONS THOSE ARE THE
KINDS OF ASSUMPTIONS PEOPLE MAKE
AND AS DOCTOR BROWN INDICATED
EARLIER THAN CHAIR NICHOLS AS
WELL. PEOPLE DEBATE THESE
ASSUMPTIONS
BUT THE BASIC APPROACH
IT'S FAIRLY STRAIGHTFORWARD AND
CAN BE DONE TRANSPARENTLY WHERE
ONE SAYS THIS IS WHAT I THINK IS
GOING TO HAPPEN AT THIS PRICE
AND THEN YOU OBSERVE WHAT
HAPPENS AND THAT COULD BE FOR
EXAMPLE PART. OF A PROCESS TO
TRACK IMPLEMENTATION MAKE SURE
THINGS ARE ON TRACK
NO THIS TECHNICAL VICE REPORT
YOU GUYS HAVEN'T MET YET HAVE
YOU I KNOW BUT THAT WOULD BE IT
SEEMS TO ME THAT HOLLYWOOD IS
THE ONLY MEMBER OF THE COMMITTEE
AT THEM HOW HE DID IT WOULD BE.
ABOUT RIGHT NOW.
NEITHER OTHER MEMBERS YOU KNOW
IT'S AN ENCOURAGEMENT HERE ON
BECAUSE IT SEEMS LIKE THAT WOULD
BE TO BE. MEANINGFUL YOU KNOW
HE'S SORT OF YOU DIDN'T
LEGISLATION YOU SAY YOU SET UP
THIS PORTANTINO YOU REALLY NEED
WE'VE GOT THE. THE ALEJO WHO'S
WORKING FOR US BUT THIS YOU
SHOULD BE.
A COMBINATION.
ALRIGHT INFORMATION CENTER
STERN.
I JUST WANT TO FOLLOW UP ON ONE
POINT RAISING GET SOME
CLARIFICATION DID DID.
DID WE SAY THAT THE THE FORMER
THAT DIRECT REFINERY MEASURE IS
NOT IN THIS CURRENT SCOPING
PLACE CORRECT.
SO.
WITH ALL DUE RESPECT TO MISTER
BROWN AND DAILY OWES PERSPECTIVE
ON COST EFFECTIVENESS ONE MAN'S
COST EFFECTIVENESS IS ANOTHER
COMMUNITIES ENVIRONMENTAL
JUSTICE HAZARD.
AND SO.
AGAIN.
YOU HAVE TO FIGURE OUT THE RIGHT
MIX
HOW YOU WHAT THE THE CHAIR AND
THE BOARD HAVE TO FEAR THE RIGHT
MIX OF HITTING TARGETS BUT.
ON BEHALF OF THOSE IN IN
COMMUNITIES LIVING NEAR THESE
REFINERIES.
.
I I'D BE DISAPPOINTED NOT TO SEE
SOME OTHERS TOOL USED TO
CONTINUE TO PUSH THEIR.
SOME REFINERIES OF TIGHTENED UP
THEIR OPERATIONS SOME HAVE BEEN
CERTAIN.
SENATOR AND SKINNER IS NOT HERE
RIGHT NOW BUT I'M SURE SHE WOULD
BE SAYING THE SAME THING SO.
DEMI COST EFFECTIVENESS SHOULD
NOT BE THE SOLE DRIVING METRIC
OF THIS ALTHOUGH I DO THINK IT'S
AN IMPROPER IMPORTANT ANALYSIS
TO HAVE OUT THERE TO GIVE US
CHOICES BUT SOMETIMES. AS A
POLICY MATTER WE MAY NOT WANT
THE MOST COST EFFECTIVE CHOICE
BECAUSE OTHER MATTERS LIKE
TECHNOLOGICAL INNOVATION AND
PUBLIC HEALTH. ACTUALLY.
PUSH US TO WANNA GO WELL BEYOND
WITH PRICE CARBON WOULD BE UNDER
JUST RELYING ON CAP AND TRADE
SO.
SORRY I JUST WANTED TO PUT THAT
IN FOR THE RECORD.
OKAY.
LET'S MOVE ON TO ONE OF THE
SUBJECTS THAT I KEEP TALKING
ABOUT THE THIRD COMPLIANCE
SPIRIT.
THE HAVE A.
AND QUESTION ELEVEN WE'RE
TALKING ABOUT. AT THIS
COMPLIANCE PERIOD I UNDERSTAND
THAT S. B..
OR AB THREE NINE EIGHT SAYS THAT
WE'RE GONNA HAVE A HUNDRED
PERCENT.
.
INDUSTRIES.
ASSISTANCE TRACTORS.
BUT WE'RE IN THE THIRD
COMPLIANCE PERIOD WHICH
MY UNDERSTANDING WAS THAT STAFF
IT RECOMMENDED THAT WE HAVE THE.
THOSE EIGHT HAVE.
COMPANIES OR INDUSTRIES THAT
WE'RE NOT REALLY CARE ABOUT WERE
WE'RE NOT COULD ACT DON'T HAVE A
HIGH.
.
RISK OF LEAKAGE WOULD BE GIVEN A
SEVENTY FIVE PERCENT YOU KNOW A
ADJUSTMENT FACTOR IN THOSE THAT
HAVE A VERY LOW AND.
RISK OF LEAKAGE WOULD BE A M..
FIFTY PERCENT FACTOR AND THE
RECENT BOARD HAS TAKEN A.
ACTIONS WERE.
RECOMMENDATIONS TO MAKE THIS
THIRD COMPLIANCE PERIOD AT THE
HUNDRED PERCENT OR THE ASSISTANT
THE THIRD VICE BEARD ASSISTANCE
AFFECTED TO BE A HUNDRED
PERCENT.
I'M.
AND IT.
SEEMS TO THE THIS CHAIR THAT IT
WAS UNNECESSARY IS IF IF OUR
GOAL IS TO REDUCE THE POLLUTION.
OF FROM AND GREENHOUSE GAS
EMISSIONS BECAUSE EVERYBODY
KNOWS THAT NEXT DECADE YOU'RE
ALL GOING TO BE A HUNDRED
PERCENT WE HAD AN OPPORTUNITY
TO.
GET SOME REAL REDUCTIONS
AT DURING THIS TIME.
PARAPHRASING
I AM THAT BUT I GUESS.
YOU HAD THE STATUTORY.
OUR DIRECTION FROM.
THREE NINE EIGHT BUT THERE'S NO
STATUTORY A DIRECTION FOR THIS
ACTION.
I'M SO WHY WAS THE BY THE
AIRPORT PROPOSED THIS CHANGE IN
HOW THIS YEAR BOARDS REASONING
FOR THE PROPOSED CHANGE RELATE
TO. THE STATUTORY AUTHORITY TO
DESIGN A CAP AND TRADE PROGRAM
TO MINIMIZE THE LEAKAGE.
WELL OTHER AT FIRST OF ALL I.
WITH ALL DUE RESPECT THAT THE
MAJOR CONCERN THAT WE'VE HAD
WITH THIS ISSUE ALL ALONG. HAS
BEEN A SMOOTH PATH
UP FOR OF COMPLIANCE THAT
MINIMIZE DISRUPTIONS IN THE
MARKETPLACE AND. MINIMIZED OUTTA
THE A A DEGREE OF ARM. ACTIVE I
FEAR AMONG THOSE WHO ARE SUBJECT
TO THIS PROGRAM SO WE'RE TALKING
ABOUT THE LEAKAGE ISSUE HERE IS
THAT WHAT WAS SOME KIND OF FAT.
A TECHNICAL ISSUE AND IT IS A
TECHNICAL ISSUE BUT LEAKAGE ALSO
HAS A REAL IMPACT ON THE STATE
OF CALIFORNIA IN TERMS OF HOW
COMPANIES THAT ARE UNDER THIS
PROGRAM AND NOW. ARE OPERATING
AND ALSO HOW CONSUMERS ARE
GETTING THEIR NEEDS AT MATT I DO
THINK IT'S IMPORTANT TO MENTION
THAT.
THE ASSISTANCE FACTOR DOES NOT
MEAN THAT EVERY COMPANY IS
GETTING ALL THE ALLOWANCES THAT
THEY NEED TO COMPLY WITH THE
PROGRAM. THEY STILL HAVE TO
REDUCE OR ACHIEVE A OUT SIDE.
OR ACQUIRE ALLOWANCES IN SOME
OTHER WAY.
AND BY TWENTY THIRTY THIS IS
GOING TO BE.
A PROGRAM IN WHICH COMPANIES
ARE GOING TO BE SCRAMBLING
BECAUSE THERE WILL THERE WILL
NOT BE ENOUGH ALLOWANCES TO
COVER THE CURRENT OPERATIONS
WE'RE TALKING ABOUT. A PROPOSAL
THAT IS GONNA END UP SHRINKING
THE POOL OF ALLOWANCES ON A
YEARLY BASIS SO IT'S ORDERLY AND
PEOPLE CAN PROJECT. BUT BETWEEN
TWENTY TWENTY ONE AND TWENTY
THIRTY THAT CAP DECLINE RATES
ALMOST DOUBLE WHAT IT IS TODAY
SO WE'RE NOT TALKING ABOUT
LETTING PEOPLE JUST CONTINUE TO
HAPPILY OPERATE AS THEY ARE
TODAY WITHOUT HAVING TO
SCRAMBLE.
TO GET MORE ALLOWANCES BUT
WITHIN A SHORT PERIOD OF TIME
THIS WINDOW OF TIME WE HAD TOLD
THE STAFF WE THOUGHT THIS WAS
NOT THE
TIME TO ARE ALSO START
SHRINKING.
OF THE ASSISTANCE FACTOR. AS
WELL BUT.
WE CERTAINLY ARE HOPEFUL THAT A.
BUT DESPITE WHAT'S HAPPENING AT
THE NATIONAL LEVEL RIGHT NOW
THAT.
THE CONTINUED PROGRESS ON.
.
COMING UP WITH MORE SPECIFIC
TARGETS AND MORE SPECIFIC.
.
REGULATIONS AND OTHER ACTIONS
INCLUDING VOLUNTARY ACTIONS TO
REDUCE GREENHOUSE GAS EMISSIONS
ON A GLOBAL BASIS IS GONNA HELP
AUTUMN WITH A WITH A OVERALL.
PRODUCING A BETTER REGIONAL
APPROACH TWO.
SOME OF THESE ISSUES AND SO
THEY'RE GIGI R. F. ITSELF WON'T
BE SUCH A BIG FACTOR. IN
DECISION MAKING BUT.
OUR ASSESSMENT WAS THAT FOR THE
GOOD OF THE CALIFORNIA ECONOMY
AS A WHOLE. THAT THIS WAS NOT
THE TIME TO START SHRINKING THAT
ASSISTANCE FACTOR BUT THAT WAS
YOUR OWN STAFF'S RECOMMENDATION
AND THAT WAS THE PREVIOUS
RECOMMENDATION I WASN'T MY IDEA
THAT WAS HER IDEA THAT SAID.
DURING THIS THIRD A.
COMPLIANCE PERIOD THAT WE
WOULDN'T NEED THE LEAKAGE IS NOT
THAT MUCH OF A PROBLEM AND THAT
AND THAT IN PARTICULARLY NOW WE
REALIZE THAT WE'RE GOING TO MEET
OUR TWENTY TWENTY GOALS. RIGHT I
THAT THAT IF WE.
BECAUSE THE LA.
SAYS IS GONNA COST US WHAT
THREE HUNDRED FIFTY MILLION
BUCKS
IF IF FOR LACK OF A OR.
I THINK JUST IN TERMS OF REVENUE
FROM HER REVERIE GRAMMY EVERY
FROM BROKEN BECAUSE I GO TO GET
THE GOOD TO GET THAT A
ASSISTANCE A TICKET TO GET
REGULAR GET AND THAT'S. IT
ALLOWS US.
AS THE LEGISLATURE TO DO SOME
GOOD IF IT WERE IMPROPERLY
INVESTING THE THE REVENUES FOR
REDUCTION MITIGATION AND MY
FAVORITE. ADAPTATION OF
RESILIENCY THAT WOULDN'T WITH
NEED TO GO WHEN THEY'RE SO I
GUESS THE THAT THAT'S THAT'S
THE.
IF WE KNEW THAT THERE ARE PRETTY
WE GAVE HIM THE SWEETHEART DEAL
AND AB THIRTY. THREE NINE EIGHT
THAT THEY CAN HAVE THE COME THE
HUNTER PERCENT COMPLIANCE IN THE
TWENTY FIFTEEN TWENTY SEVENTEEN
AND THEY KNEW THEY GO TO GET
THAT FOR DECADES.
I AM.
I AG I GUESS ET
WAS THERE OTHER THAN THE
POLITICAL THAT DID THE
TERMINATION BUSTER A FACTUAL
FINGERS OR SOMETHING THAT CAME
UP THAT YOU THOUGHT THAT THERE
WOULD BE SOME LEAKAGE FROM
THESE.
MODERATE BUSINESSES THAT THAT
THAT. THAT
CHANGE THAT THE PHILOSOPHY OF
THE THINKING YOU SAY POLITICAL
LIKE THAT'S A BAD THEY KNOW WELL
I'M JUST SAYING I I HAVE TO HIM
I. INTO A LOT GOOD EATING
GETTING THROUGH THE HEARING ON
THREE NINE EIGHT VOTING FOR
THREE NINE EIGHT EVAN SOME
STATEMENTS I'VE MADE PUBLICLY SO
SO IT WAS NOT. YOU KNOW I.
YEAH I DID WHAT I DID BUT THERE
WAS THERE WAS.
STATUTORILY WE DON'T NEED TO
HAVE THE ASSISTANT FACTOR FOR
THIS THIS.
THIS PERIOD AND IT WAS ONE OF
THESE.
ELEMENTS THAT GAVE US TRUE
HOPEFULLY TRUE REDUCTION OR OR
CASH IN HAND I GUESS.
WELL YES AND I UNDERSTAND THAT
THE THAT THE MONEY THAT THE
LEGISLATURE COULD SPEND THE
MONEY. IN WAYS THAT.
MANY OF US INCLUDING ME MIGHT
THINK WE'RE BETTER.
BUT WE'VE AS A BOARD BAY THE
DECISION THAT IN A TIME OF
UNCERTAINTY AND OF.
REAL.
CONTROVERSY ABOUT HOW THIS
PROGRAM IS GOING TO MOVE FORWARD
IN CALIFORNIA. THAT IT WAS
BETTER NOT TO DISRUPT THE STATUS
QUO WHEN IT CAME TO THIS
PARTICULAR ELEMENT IS NOT A HUGE
AMOUNT. EITHER WAY I EITHER FOR
THE INDUSTRIES THAT GOT THIS
BENEFIT OR FOR THE. A OR OR FOR
THE REVENUE THAT WAS FOR GONE
AND I UNDERSTAND THAT YOU COULD
ARGUE THAT OUR JUDGMENT WAS NOT
THE RIGHT ONE BUT IT WAS. WHAT
WE AS A BOARD FELT OVERALL WAS
THE BEST WAY TO KEEP THE MARKET
TOM ENOUGH IN A HEALTHY AND
SOUND?
CONDITION AND WE WERE LOOKING AT
ME WE DO REALLY LOOK NOT JUST
THAT REGULATED INDUSTRY VERSUS
ALUM. VERSUS SAYS THAT THE
PUBLIC OF REVENUE BUT ALSO AS
REALLY A AS A MARKET THAT WE
HAVE CREATED.
AS A STATE THAT WE HAVE WE'VE
CREATED THIS NEW FINGERLESS SAYS
THIS MARKET AND THAT WE WANTED
TO STAY AS.
.
STRONG AND AS.
.
HAPPY IF YOU WILL OF A MARKET
COULD BE HAPPY IF THE MARKET BE.
BUT NON VOLATILE AND GENERALLY.
MOVING ALONG LINE.
IN A POSITIVE DIRECTION THAT'S
THAT'S WHAT WE WOULD LIKE IT TO
BE YEAH I'M JUST.
CRITICAL THE BOARD I GUESS THAT
ONLY HEAR FROM DOCTOR BROWN IS
THAT IT HAPPENED AFTER WE HIT
APPROVED EXTENSION TAKE ALL THE
LEGAL REQUIREMENTS CREATED THE
STABILITY THAT BUSINESS IS
ALWAYS. REMINDING ME THAT WE
NEED WE NEED THE GOVERNMENT TO
GIVE US A CLEAR MAP IN.
THREE NINE EIGHT DIDN'T DO
ANYTHING ELSE IT SAID THIS IS
WHAT IT'S GOING TO BE REFINERIES
YOUR AND ALL THE OTHER. THERE
WERE A LOT OF.
COOKIE SEC GOT SPREAD OUT TO
PEOPLE THAT I KNOW I'M WE DO THE
EXPENDITURE PLAN THAT I HAD TO
SIT AND SAY OKAY. THAT WAS NOT
MY IDEAL BUT IT WAS TO DEAL AND
THEN THIS WAS EXTRA.
DOCTOR BROWN MY WRONG HERE.
THERE YOU TO SAY YEAH.
I MEAN.
I THINK IT DOESN'T FROM KIND OF
A OF POLICY PERSPECTIVE IT'S A
VERY SOARED TRICKY ISSUE AND I
DON'T LOT OF IT COMES DOWN TO
SORT OF ANALYTICAL QUESTIONS
AROUND.
WHAT'S THEIR THE APPROPRIATE
NUMBER OF ALLOWANCES TO.
TO PROVIDE A CERTAIN INDUSTRIES
IN ORDER TO ONE ENSURE THAT
THERE ISN'T ANY LEAKAGE
I TWO.
MAKE SURE THAT THERE'S NOT TOO
MANY TWO.
KIND OF.
YOU GET IN THE WAY OF SOME OF
THE INCENTIVES THAT WOULD
OTHERWISE BE PROVIDED FO COST
EFFECTIVE REDUCTIONS IN SO. I'M
GETTING THAT NUMBER RIGHT
GETTING SORT OF THAT ANALYSIS
RIGHT.
AND GETTING THAT NUMBER RIGHT
IS.
EXTREMELY DIFFICULT AND KIND OF
ALTMAN I GUESS IT SEEMS LIKE
SORT WHERE YOU WHERE YOU MIGHT
WANT TO STAND ON THIS POSITION
FROM KIND OF THE AN ANALYTICAL
PERSPECTIVE IT DEPENDS ON KIND
OF. KNOW HOW COMFORTABLE YOU ARE
WITH KIND OF AN ANALYSIS THAT
YOU WRE A KEEPING THE
ASSISTANCE FACTORS LOWER ISN'T
GONNA SORT OF PROVIDE AN
UNNECESSARY AMOUNT OF RISK FOR
LEAKAGE. ARM AND YOU KNOW THAT'S
THAT'S KIND OF A DIFFICULT
DIFFICULT QUESTION TO ANSWER BUT
THOSE ARE KIND OF THAT THE KEY
TRADE OFFS AND THEN OF COURSE
YOU DO HAVE THE. THE.
QUESTION OF YOU KNOW HOW IT
AFFECTS REVENUE THAT COMES INTO
THE STATE
I THINK IN OUR.
AND ARGUE THAT'S KIND OF A
SECONDARY QUESTION TO KIND OF
THESE ISSUES AROUND KNOW WHAT
WHAT'S NECESSARY TO PREVENT
LEAKAGE BUT.
WHILE ALSO NOT PROVIDING TOO
MANY ALLOWANCES TO KIND OF DOLE
SOME OF THE PRICE INCIDENTS THAT
WOULD OTHERWISE BE PROVIDED.
A COLUMN MORE.
I JUST TWO BRIEF OBSERVATIONS
SAY I AGREE A LOT OF THIS IS A
POLITICAL DISCUSSION BOTH FOR
THE LEGISLATURE AND THEN THE
REGULATORY AGENCY. ARM THAT THE
TO TECHNICAL OBSERVATIONS ARE
ONE AT THE LOWER ASSISTANCE
FACTORS ARE ACTUALLY WERE
CODIFIED IN THE RIGHT.
RIGHT NW THERE'S A BOARD
RESOLUTION TO CHANGE THAT.
SO WE HAVEN'T HEARD YET WHAT
THE AGENCY'S OFFICIAL
EXPLANATION FOR THE CHANGES.
PRIOR TO THE EFFECTS OF AB THREE
NINETY EIGHT COMING IN IN THE
POST TWENTY TWENTY PERIOD IN
HISTORICALLY THEY GET THE FREE
ALLOCATION QUESTIONS BEEN DONE
ON THE BASIS OF LEAKAGE RISKS
AND SO I DON'T KNOW WHETHER THE
BOARD. WILL JUSTIFY THIS
PARTICULAR DECISION ON THAT
BASIS OR SOMETHING ELSE WE
THERE'S NO INFORMATION ON THAT
YET.
AND AS TO THE LEAKAGE RISK I
THINK IT'S IMPORTANT TO OBSERVE.
AS WE'VE BEEN TALKING ABOUT
WITH RESPECT TO THE NUMBER OF
ALLOWANCES IN THE PROGRAM RIGHT
NOW THERE'S FAR MORE ALLOWANCES
IN THE PROGRAM THEN EMISSIONS
THAT ARE COVERED BY THE PROGRAM.
IF A RELATIVELY LAX PERIOD IN
THE MARKET WITH RELATIVELY LOW
MARKET PRICES AND THAT'S
GENERALLY CONSISTENT WITH
RELATIVELY LOW LEAKAGE RATES.
I'M AGAIN WHAT THE BOARD MAKES
ITS DECISION ON HOW WAYS AND
BOUNCES THESE ISSUES IS NOT FOR
ME TO COMMENT ON IT AGAIN
THERE'S NO INFORMATION ON THAT
BUT. THE MARKET RIGHT NOW IS NOT
IN A PARTICULARLY HIGH PRICE
ENVIRONMENT. ARE IN FACT IT'S
YOU KNOW ON THE VERY LOW END OF
THINGS AYE AND THE CURRENT
REGULATIONS DO NOT INCLUDE THIS
ADJUSTMENT BUT AGAIN WE'RE
EXPECTING THAT THE PROPOSAL TO
CHANGE THAT SOON. SO BEGS THE
QUESTION OF WHO WOULD LEAVE.
RIGHT GIVEN THIS IT GIVEN.
IN A DIFFERENT EIGHTEEN NINETEEN
OR TWENTY THAT M. WE THINK ABOUT
LEAKAGE OBVIOUSLY WE ALWAYS
SERVICE HAVE THIS IMAGE OF
PEOPLE YOU KNOW WALKING OUT THE
DOOR BUT IT'S MORE QUESTION OF.
WHERE THINGS CALIPHATE IN
CALIFORNIA COME FROM AND WHAT
WERE?
WHAT WE'RE ABLE TO PRODUCE HERE
VERSUS WHAT WE BUY FROM OTHER
PLACES?
OKAY BUT LET'S MOVE ON TO THE
BANK YES JUST A VERY BRIEF
COMMON IN THAT I THINK IT'S
IMPORTANT OBSERVED AT THE THE
REFINERY SECTOR IS THE SINGLE
LARGEST RECIPIENT OF THESE
CHANGES AND SIZE TO THE IS THE
NATURE OF THE PRODUCTS THAT ARE
AFFECTED THIS IS NOT. RETAIL
SHOPS THIS IS A SMALL NUMBER OF
RELATIVELY CONCENTRATED
EMISSIONS.
SO THERE.
THE CARAVAN THREE NINETY EIGHT.
THERE EXCEPT RIGHT WELL
EMISSIONS LEAKAGE IS WHEN THE
EMISSIONS TAKE PLACE SOMEWHERE
ELSE RIGHTORDER TO SERVE OUR
MARKET ITSELF.
QUESTION OF.
WHETHER THE STUFF THAT WE ARE
ALL USING TO. COMPETE WITH IS
BEING MADE HERE OR SOMEWHERE
ELSE.
OKAY LET'S MOVE TO THE UNITED
STATES BANKRUPTCY COURT IN
DELAWARE AND.
.
LOVE PALOMA.
DECISION ARM.
I DON'T KNOW IF YOU'RE GOOD LUCK
ON THE APPEAL I THINK IT IS
THINK YOU KNOW THEY THEY GET A
BANKRUPTCY. JUDGE TO DO OUR
PALETTE PANEL TO DETERMINE THAT.
SUCCESSOR AGENCIES WILL BE
DIRECTLY LIABLE FOR SOMETHING.
INEQUIVALENT.
.
CARBON OBLIGATION THAT THEY HAVE
AND THAT'S WHAT MY READING OF
THE THE BANKRUPTCY CODE IN THAT
CHAPTER ELEVEN BUT.
.
I GUESS THE QUESTION IS.
IF YOU'RE DON'T WINDY.
HER THE APPEAL.
WHAT'S A.
DO YOU THINK THAT THERE ARE.
.
I CHANGES OR HOW WHAT WHAT YEAH
THOSE WITNESSES SOLUTION HERE AT
WHICH IS.
OF COURSE WE THINK WE SHOULD
WIN BECAUSE THIS HAS BEEN A
LONGSTANDING INTERPRETATION OF
THE REGULATION BUT HAVING SAID
THAT WE CAN ALSO DO A VERY
NARROW RULE MAKING. THAT
CLARIFIES THAT ANY SUCCESSOR
ENTITY AFTER THERE'S A CHANGE OF
OWNERSHIP IN A COMPANY IS
RESPONSIBLE FOR WHATEVER THAT
PRESALE COMPLIANCE OBLIGATION
WAS THAT'S OUT OF BANKRUPTCY
ISSUE THAT'S JUST A GENERAL. YOU
KNOW COMPANIES GET BOUGHT AND
SOLD WE CAN CLARIFY THROUGH
REGULATION THAT THE SUBSEQUENT
PURCHASER IS RESPONSIBLE FOR
COMPLIANCE UP BY THAT ENTITY AND
WE THINK WE CAN GET THAT DONE IN
THE NEXT FEW MONTHS.
YES.
BOB FENNER NIELSEN NICHOLS WHO
THEIR STATUTORY.
.
FOUNDATION THEN FOR THAT KIND OF
A REGULATION
IS THERE A STATUTE.
I THINK WITHIN THE SCOPE OF THE
BOARD'S AUTHORITY I TO ADOPT A
CAP AND TRADE. PROGRAM IN THE
FIRST PLACE WE GET TO DEFINE WHO
SUBJECT THAT REGULATION AND IN
THIS CASE ALL WE'RE SAYING IS
THAT WE WANT TO CLARIFY THAT.
YOU KNOW IF YOUR COMPANY NOW
GETS SOLD TO A CENTER DIRECT
HAVE SKIS.
BUSINESS THAT HE'S GONNA BE
RESPONSIBLE FOR WHATEVER YOUR
OBLIGATIONS WERE BEFORE THAT.
THE IDEA THAT ANY FUTURE.
CLEVER BANKRUPTCY PLANNING WOULD
BE QUASHED BECAUSE THE OF THE
REGULATIONS THAT WOULD BIND
THEM.
GOT TO THINK ABOUT THAT.
DOT HARAS.
YOU HAVE NO LOOK LEFT PALOMA.
COMMENTS.
TECHNICAL AND WORK A VERY
BRIEFLY JUST TO HIGHLIGHT FOR
COMMITTEE MEMBERS THIS ISSUE IS
IMPORTANT BECAUSE THIS IS THE
FIRST MAJOR BANKRUPTCY IN THE
NATURAL GAS SECTOR AND IT IS
ENTIRELY POSSIBLE THAT OTHER
LARGE EMITTERS COULD GO
BANKRUPT.
AND SO AGAIN THE QUESTION WHAT
HAPPENS TO THESE EMISSIONS IF
THEY DON'T STAY CURRENT WITH
THEIR OBLIGATIONS IS A VERY
IMPORTANT ONE.
I WANT TO HIGHLIGHT I WAS
READING THAT THE BOARD'S
RESPONSE YOUR QUESTIONS I FOUND
A VERY INTERESTING THAT IF IT
EITHER THIS APPEAL OR. THE
REGULATORY PUZZLED THE CHAIR
NICHOLS HAS IDENTIFIED IF THOSE
ARE NOT SUCCESSFULLY THEY'RE NOT
LEGALLY VALID. ARE THE BOARD
SUGGESTED THAT THEY COULD FIX
THE PROBLEM BY REMOVING THE
ALLOWANCES THAT WERE NOT
SUBMITTED FROM THE OVERALL
SUPPLY OF ALLOWANCES IN THE
FUTURE. AND I JUST WANNA SAY TO
THE EXTENT THAT THAT IS THE
SUGGESTION THE BOARD MIGHT TAKE
SERIOUSLY THAT WOULD RESOLVE THE
ENVIRONMENTAL INTEGRITY PROBLEM
THAT'S POSED BY THESE
BANKRUPTCIES FROM COMPANIES THAT
DO NOT FINISH THE COMPLIANCE
OBLIGATIONS BEFORE GOING
BANKRUPT.
AND YOU BELIEVE CHAIR NICHOLS
THAT YOU HAVE THAT AUTHORITY NOW
SET AT LEAST THAT'S THAT'S NOT.
THE PEOPLE AND AND JUST JUST TO
CLRIFY THAT IS A DECISION THAT
IS NOT TARGETING THE SUCCESSOR
ENTITY IT'S SAYING THE OVERALL
MARKET SUPPLY NEEDS AN
ADJUSTMENT TO STAY ON COURSE
WITH OUR TARGET.
SO THE BROTHERS AND SISTERS IN
THE SECTOR WITH.
OKAY SELF REGULATION PROBABLY.
I SEE THAT.
ALRIGHT THE INDEPENDENT THE.
EMISSIONS MARKET ADVISORY
COMMITTEE.
COURAGE THE GOVERNOR AND THE
ASSEMBLY TO NAME THERE A
MEMBERS.
WE'RE TALKING ABOUT HOW THE
PROCESS HOW HOW TO.
THE AIRPORT IS GOING TO WORK
WITH THE INDEPENDENT ADVICE YOUR
MARKET OUT WHAT THE ALEJO'S
YOU'RE ON THE BORDER FIELD
YOU'VE ALREADY BEEN NAMED RIGHT.
OUR MEMBER A YEAH A
REPRESENTATIVE FROM THE THE LA A
WILL BE IS IN PART THE
COMMITTEE.
OKAY.
SO I GUESS THE.
.
I GUESS THE THE QUESTION IS THE
COMMITTEES
SCOPE.
ARM.
HE DID THE RESPONSE WE GOT THE.
AIRPORT DIDN'T SAY ANYTHING
ABOUT THAT THE SCOPE BUT HAVE A
COMMITTEE
AND WEATHER.
THERE'S GONNA BE IN THEIR GOOD
HEALTH WHAT'S THERE ENGAGEMENT
WITH THE THREE AB THREE NINETY
EIGHT.
UP PROCESS WELL OTHER THE
LANGUAGE SAYS THEY HAVE TO
EVALUATE THE ECONOMIC AND
ENVIRONMENTAL PERFORMANCE AT THE
CAP AND TRADE PROGRAM AND OTHER
CLIMATE POLICIES SO THAT'S A
VERY VERY BROAD WE MET. I THINK
IT MAY DEPEND IN PART ON HOW
MUCH TIME THE MEMBERS OF THE
COMMITTEE HAVE TO PUT INTO THIS.
ADDED TO THIS ENDEAVOR BUT.
.
WE ARE NOT THE CONVENERS IT'S
CAL EPA THAT ACTUALLY
CONVENIENCE THAT OUT COMMITTEE
SO I OBVIOUSLY WE WOULD HELP
HAVE INPUT TO THEIR DECISION
BUT.
I IT IS ULTIMATELY UP TO THE
SECRETARY TO DO.
ASIDE THE GOVERNOR ALSO GETS TO
APPOINT THREE MEMBERS TO THAT
AYE MIDEAST SO I ASSUME HIS
THREE APPOINTEES WILL ALSO HAVE
SOME STRONG VIEWS ON THIS. HAD
THIS TOPIC AS WELL BUT I'M
HAVING DEALT NOW WITH A NUMBER
OF DIFFERENT KINDS OF. OVERSIGHT
AND ADVISORY COMMITTEES I'M
REALLY HOPING THAT THIS
COMMITTEE IS THAT BROAD BASED
THAT IT BRINGS PEOPLE BUT A LOT
OF DIFFERENT KINDS OF EXPERTISE
AND VIEWPOINTS. INTO THE INTO
THE DISCUSSION AND THAT THEY.
ENGAGE IN A VERY ROBUST.
DISCUSSION ABOUT ALL OF OUR
EQUIPMENT PROGRAMS.
WHICH IS THE LA OF.
AND HOW WOULD YOU LIKE TO SEE
THE
COMMITTEE.
I FIGURED WHEN I I THINK THERE'S
JUST A LOT OF INTERESTING QUEST
FIRST OF ALL WE THINK THE
COMMITTEE HAS A LOT OF THE TEN
AS A LOT OF POTENTIAL TO JUST
BRING SOME ADDITIONAL EXPERTISE
TO HELP.
EITHER ADVISE OR OF VALUE EIGHT
PROGRAM PERFORMANCE.
WOULD JUST I THINK HIGHLIGHTED
NO REPORT A FEW KIND OF ISSUES
FOR POTENTIAL CLARIFICATION
REFINEMENT OR ADDITIONAL
DIRECTION TO ENSURE THE
COMMITTEE IS PROVIDING THE TYPE
OF INFORMATION THAT THE
LEGISLATURE IS MOST INTERESTED
AND. ONE OF THEM IS THE ISSUE OF
SCOPE WHICH WAS ALREADY
MENTIONED THINKING ABOUT WHICH
POLICIES THE LEGISLATURE WANTS
THE COMMITTEE TO. INVESTIGATE
AND SERVE THE BROADER SET OF
POLICIES PERHAPS THERE EITHER
THE MORE RESOURCES THAT WOULD
NEED TO BE PROVIDED. OR PERHAPS
THE LAST TIME IN DEPTH THAT THE
COMMITTEE WOULD WOULD BE ABLE TO
GO INTO. A BIT ONE OF THE OTHER
ISSUES THAT OUGHT TO THE CHAIR
OF BUDGET SENATOR HOOKS AND
GOING TO HAVE.
ONE OF THE OTHER ISSUES IS JUST
A REALLY THE KIND OF ROLE OF THE
COMMITTEE AND WE USE ANY OF THE
ALTHOUGH THE COMMITTEE IS SORT
OF REFERRED TO AS AN ADVISORY
COMMITTEE. AS CHAIR NICHOLS KIND
OF RED THAT DIRECTION OF THE
COMMITTEE IT'S AYE IN STATUTE
IT'S TO EVALUATE THE
EFFECTIVENESS.
AND OR THE PERFORMANCE OF.
OF THESE MEASURES AND SO WE SEE
THOSE IS SOMEWHAT DIFFERENT
TASKS REALLY SORT OF ADVISING ON
THE FUTURE DESIGN OF THE PROGRAM
VERSES EVALUATING THE
EFFECTIVENESS OF WHAT IS WHAT IS
ACCOMPLISHED.
AND SO YOU KNOW THINKING ABOUT I
GUESS WHAT WHAT WHAT WHAT WHAT
WAS HER THE LEGISLATURE'S ALTMAN
INTENT WHAT IT WHAT ARE THEY
EXPECTING FROM THIS COMMITTEE.
ARE BOTH
ON GOINGTO LESS RESOURCE
INTENSIVE C SINCE THAT
LARGELY I THINK SORT OF RELIES
ON KIND OF EXPERTISE ARE AMONG
THE COMMITTEE MEMBERS THAT THEY
ALREADY HAVE.
AND CAN BE DIFFERENT FROM WHAT
IT MIGHT TAKE TO CONDUCT AN
ANALYSIS OF THE EFFECTIVENESS
AND HER PERFORMANCE OF THE
PROGRAM'S SECOND.
TEND TO BE MORE RESOURCE
INTENSIVE AND REQUIRE A HOUSE OR
A MORE IN DEPTH ANALYSIS AND SO.
ARE THE OTHERS WANT DIFFERENT
WAYS THE LEGISLATURE COULD GO
BUT WE THINK WE JUST WANTED TO
HIGHLIGHT SOME OF THOSE KEY
DECISION POINTS TO THINK ABOUT
YOU WHAT THE LEGISLATURE'S.
LOOKING FOR WHAT IT'S INTERESTED
IN.
FROM THIS COMMITTEE IS MOVING
FORWARD.
COLOR YOU'RE WAITING RADIO READY
TO CONVENE.
WERE CONVENE TO GUESS AT NAM
A COUPLE THINGS TO SAY ABOUT
THIS.
MAGAREY A DOCTOR BROWN'S
IDENTIFIED SOME OF THE ISSUES.
I COMMEND THE REPORT THAT YOU
WROTE IN TERMS OF SOME OF THE
ISSUES TO CLARIFY WHAT THE SCOPE
AND PURPOSE OF THE COMMITTEE
ASSISTS AS CHAIR NICHOLS POINTED
OUT THERE'S AMBIGUITY. IN THAT
REACH A US SPECIFICALLY ABOUT
INVOLVEMENT IN THE AB THREE
NINETY EIGHT IMPLEMENTATION
PROCESS IT'S A FOR MY PART I
HAVE NOT BEEN INVOLVED IN ANY
WAY.
AND ACTUALLY THERE'S SOME.
.
LACK OF CLARITY AROUND WHETHER
OR NOT IT'S APPROPRIATE FOR ME
TO BE INVOLVED AS AN OCTOBER
TWENTY SEVENTEEN WORKSHOP
PRESENTATION FOR BOARD STAFF
THAT SUGGESTS BOARD MEMBERS
SHOULD NOT BE PARTICIPATING IN
ANYWAY IN THE REGULATORY
PROCESS.
TO PRESERVE THEIR INDEPENDENCE
IN A BACKWARDS LOOKING
EVALUATION CAPACITY.
AND THE LAST THING I'LL MENTION
IS.
AS CHAIR NICHOLS POINTED OUT
THE.
ADVISORY COMMITTEE IS TO BE
HOSTED BY CAL EPA I WAS
APPOINTED IN SEPTEMBER AND.
HAVE NOT HEARD ANYTHING FROM
CAL EPA.
RODRIGUEZ.
OKAY.
I LET'S MOVE TO.
A.
I ITEM NUMBER FOURTEEN A
QUESTION FOURTEEN A WHERE THE.
AB THREE NINE EIGHT DEFINES
DIRECTING FIRE MENTAL BENEFITS
IN THE STATE.
AS A REDUCTION HER VOICE
AVOIDANCE OF EMISSIONS OF ANY
AIR POLLUTANT IN THE STATE OTHER
REDUCTION OR VOTER AVOIDANCE OF
ANY POLLUTANT THAT COULD HAVE AN
ADVERSE EFFECT ON THE WATERS OF.
STATE SO.
I GUESS THE QUESTION IS THIS
THE AIRPORT INTERPRET THE
STATUTE TO MEAN THAT FOR EVERY
OFFSET SURRENDERED THAT DOES NOT
PROVIDED DIRECT ENVIRONMENTAL
BENEFIT IN THE STATE THAT ONE
WAR MUST BE SURRENDERED.
THAT DOES PROVIDE DIRECT
ENVIRONMENTAL.
BENEFIT.
GOT A NEW FOR TO YOUR FANS.
AM.
IT'S A CUMULATIVE EAI I DO
PERCENT PURSES THAT ONE FOR ONE
ROOF RIGHT UP IN.
I THINK THAT.
.
IT'S GONNA DEPEND ON THE TYPE OF
PROJECT.
IT TO SOME EXTENT AS WELL AS
THE. AS WELL AS THE TYPE OF
EMISSION REDUCTION THAT WORKED
WHICH ACTUAL LOVE VERSION OF A
GREENHOUSE GASES INVOLVED.
THE STATE I THINK WANTS TO BE
ADDRESSING THESE QUESTIONS IN A
BROADER CONTEXT IN TERMS OF HOW
THIS IS ACTUALLY GOING TO WORK.
AND YOUR.
AS WE SAID BEFORE.
THERE'S A REALLY WIDE RANGE OF
IDEAS OUT THERE ABOUT.
WHAT IS A USEFUL AS A USEFUL
KIND OF A?
A AN OFFSET FOR CALIFORNIA. WAR
FOR THE. WORLD AS A WHOLE. ARM I
DON'T THINK WE BELIEVE THAT ONLY
IN. PROJECTS THAT ACTUALLY OCCUR
WITHIN THE STATE ARE NECESSARILY
OF DIRECT BENEFIT TO THE STATE
BECAUSE IT DEPENDS ON.
WHAT WE'RE LEARNING FROM THE
PROJECT WHAT WE'RE WHO OWNS THE
OFFSETS SAYS BETTER ARE CREATED
TO HEAR? OF AND HOW WE MAKE SURE
THAT THE NUMBERS STAY TRUE SO
THAT YOU KNOW THERE THERE IS A
BALANCE AS REQUIRED. AYE IS OF
AN INTERESTING CALCULATION.
A PROBLEM IN AND OF ITSELF SO I
AM I THINK THAT WE'RE GONNA.
I HAVE A CONSIDERABLE DEGREE OF
ADDITIONAL DISCUSSION ABOUT THIS
ISSUE BEFORE WE GIVE YOU A HARD
AND FAST ANSWER ABOUT HOW THAT'S
GONNA WORK IT'S TO IT'S
INTERESTING BECAUSE IN THE
INTERNATIONAL ARENA YOU KNOW WE
HAVE A GLOBAL STOCK TAKE THAT
THEY. ALL THE COUNTRIES ARE
WORKING ON RIGHT NOW WHAT IS
WHAT'S THE PROGRAM THAT YOU'RE
GONNA HAVE TO REDUCE IT AND WHEN
YOU LOOK AT OTHER COUNTRIES THAT
ARE. YOU KNOW.
STRUGGLING IN I THINK I LEARNED
FROM BOND THAT FIFTEEN THE
DIFFERENCE BETWEEN TWO PERCENT.
A TWO DEGREES RESURGENT IS
LICENSE I'M FIVE DEGREE YEAH IS
FIFTEEN COUNTRIES GO ON THE
WATER LEARNED THAT EXISTS RIGHT
NOW IN IN UNTIL YOU GET A STARK.
UNDERSTANDING AT THAT WHY THESE
FOLKS ARE EAGER TO SEE THEM THE
LEADERS SIXTH LARGEST ECONOMY
FOR INSTANCE THE THAT. I AM AND
I AYE AYE THE.
POLICIES WHAT THE POLICY IS ON
THE OFFSET THE REDUCTION
ABSOLUTE YOU REALIZE SOME OF
THESE OFFSETS IF THEY WERE
REALLY IN THE AMAZON FOREST.
AB WERE OR THAT READ WOULD TAKE
A A. COUNTRY URINARY THE SPIN
OBLITERATED AND SORT OF RESTORE
SOME OF THE CLIMATE RESOURCES
THERE REALLY HAS AN
UNBELIEVABLE.
IMPACT I GUESS JUST.
POLITICALLY AS WE ARE SAFE SOME
FOLKS ARE HAVING PROBLEM SAME
WILL.
PERSON WHO SITS IN FRONT OF THIS
REFINERY ONCE THAT THESE THESE
IMPROVEMENTS OCCUR RIGHT HERE
AND WE HAD THAT CONVERSATION.
THAT THAT'S.
THE LAW WILL TO SAY THREE FIRST
OF ALL I DO WANT TO POINT OUT
AND I KNOW SENATOR STERN HAS
LEFT BUT.
IN ADDITION A THREE NINETY
EIGHT WE ALSO HAVE. SIX
SEVENTEEN WHICH HAS CREATED A
NEW PROGRAM TO FORCE.
ALL OF US
TO TAKE MORE SERIOUSLY THAT AT
NEEDS OF THE COMMUNITIES THAT
ARE MOST IMPACTED BY AIR
POLLUTION AND. I THINK OUR
ALTHOUGH POLITICALLY AGAIN WE
HAVE COUPLED GREENHOUSE GASES
WITH OTHER POLLUTANTS AND THERE
CERTAINLY ARE REASONS WHY THEY
SHOULD BE LOOKED AT TOGETHER.
THE GREENHOUSE GAS PROGRAM IN
AND OF ITSELF IS NOT SUFFICIENT
TO DRIVE THE KIND OF CHANGES
THAT NEED TO HAPPEN TO UP TO
PROTECT AND AND.
HOPEFULLY ENHANCE.
THE QUALITY OF LIFE IN THE
PLACES WHERE TOXIC AIR POLLUTION
IS THE MOST IMPORTANT FACTOR IN
TERMS OF THEIR.
EXPERIENCE OF.
AIR QUALITY SO I'M WE HAVE TO
BE MOVING FAST AND SERIOUSLY ON
THAT FRONT.
I DON'T SEE THAT AS NECESSARILY
BEING OUT IN CONFLICT WITH THE
IDEA THAT CALIFORNIA COULD BE
ENGAGED IN EFFORTS TO.
.
GET. A MEANINGFUL AND AB
HOPEFULLY.
AB EDUCATIONAL AS PROGRAMS
GOING ON IN OTHER COUNTRIES
OTHER REGIONS WHERE WE DO
BUSINESS SAID WE HAVE ECONOMIC
INTERESTS AS WELL. I THINK THAT
WE CAN DO BOTH OF THOSE THINGS
BUT.
IT IT. WE DO HAVE TO BE CAREFUL
ABOUT.
HOW WERE APPROACHING IT'D MAKE
SURE THAT THE WHATEVER THOSE
OFFSETS ARE A REAL AND AND DATA
THAT WE CAN ACTUALLY BE? SEEING
THE BENEFITS OF THEM IN TERMS OF
EMISSIONS AS A WHOLE BUT THE
NUMBERS THAT I'VE SEEN SUGGEST
THAT WITHOUT REALLY SERIOUS
EFFORTS TO. STORE CARBON IN THE.
IN THE IN THE FOREST SAYS.
AS TROPICAL AREAS OF THE WORLD
THAT.
THAT ONE POINT FIVE NUMBER
CAN'T BE ACHIEVED.
BACKGROUND IDEAS ON.
CALCULATIONS HERE ON OFFSETS.
CRITICS EVER I THINK I THINK
JUST SORT OF THE THE MORE.
TECHNICAL ISSUE ISN'T RESOURCE
IT IS A LITTLE BIT MORE OF A
KIND OF TECHNICAL AND CLARIFYING
KIND OF WHAT WHAT THE
LEGISLATURE'S INTENT WAS KIND OF
THAT WAS THE FOCUS OF. OF THE
QUESTION REALLY IS IS KIND OF
AROUND YOU KNOW HOW TO APPLY
THIS LIMIT ON THESE NON DIRECT
OFFSETS WHETHER OR NOT.
IT IS.
KIND OF HALF OF THE NUMBER OF
ASSETS THAT ARE ENERGY USES ON
AND SO IN OTHER WORDS THEY CAN I
HAVE TO BE ONE TO ONE DIRECT IN
NON DIRECT. OR WHETHER YOU KNOW
AN ENTITY CAN KIND OF USE UP TO
TWO PERCENT OR SORT OF HALF OF
THE OVERALL LIMIT FROM THESE NON
DIRECT OFFSETS WITHOUT ANY
DIRECT.
OFFSETS AND SO THAT'S GOING TO
AN AREA WHERE I THINK JUST FOR
THE WAY THE STATUTE IS WRITTEN.
IT'S NOT A COULD BE INTERPRETED
TO PERHAPS EITHER WAY.
AND SO THE LEGISLATURE JUST
MIGHT WANT TO WHAT WHAT WILL
WANT TO ENSURE THAT YOU KNOW
WHATEVER A ARBY'S INTERPRETATION
IS IS CONSISTENT WITH WHAT THE
LEGISLATURE'S INTENT WAS OR
CLARIFY YOUR WHAT ITS INTENT
WAS.
AKON WOULD YOU HAVE ANY IDEAS ON
HOW WE CAN
GAME THIS DIRECT ENVIRONMENTAL
BENEFIT THAT WE'RE.
IN.
DESIRE.
SO MUCH I AT THINK IT'S A IT'S A
CONCEPTUALLY VERY DIFFICULT
QUESTION.
I THINK THE BOARD'S RESPONSE
HERE WITH EXAMPLE THE OZONE
DEPLETING SUBSTANCES PROTOCOL
RAISES A LOT OF THE KINDS OF
DIFFICULT QUESTIONS THAT THE
BOARD WILL NEED TO ADDRESS.
I IN ITS AB THREE NINETY RULE
MAKING PROCESS I HAVE NO IDEA
WHAT THE LEGISLATURE SPECIFIC
CONTENT IS THAT WITH RESPECT OF
THESE PROVISIONS. BUT I THINK
CONVERSATIONS ON THAT FRONT
COULD BE PRODUCTIVE AND I WILL
CERTAINLY BE LOOKING FOR
CONSISTENCY IN AND WHAT THE
BOARD'S ULTIMATE DECISIONS ARE
BUT THERE ARE VERY DIFFICULT
QUESTIONS RELATED TO THE IMPACTS
ON LOCAL AIR POLLUTION. VERSUS
GLOBAL AIR POLLUTION.
AND AND I THINK IT'S IMPORTANT
REMEMBER WHEN IN OFFSETS PROJECT
IS PRODUCED AND A CREDIT IS
GENERATED IN IN STATE FACILITY
CAN EMIT AN EQUAL AMOUNT OF
GREENHOUSE GASES. AND
POTENTIALLY MORE OF THE LOCAL
AIR POLLUTION CO POLLUTANTS.
THAT ARE A CONCERN TO FOR
EXAMPLE DISADVANTAGED
COMMUNITIES IS THAT THOSE ARE
THE SORTS OF ISSUES THAT I KNOW.
ARE ON THE BOARD'S AGENDA AND
WILL BE PART OF THE STOCK
PROCESS.
NO I DON'T WE'VE GOT ANSWERS I
MEAN WE'VE TALKED ABOUT.
I CAN BRING UP SENATE NO FREE
NUCLEAR GENERATING FACILITY AND
HOW WE'RE GOING TO DO SOME
FORECASTING BUT I THINK WE'VE
TALKED ABOUT.
THAT THAT'S ON SIXTEEN ARM.
THE INEXACT SCIENCE OF
FORECASTING ONE OF WE LEAVE THAT
BECAUSE THIS IS JUST OUR FIRST
OF THE OVERSIGHT HEARING FOR.
THE FUNCTION THAT WE
HAVE I GUESS ALL IN IN OUR LAST
QUESTION WE TALKED ABOUT THE
EXPORT A BILL THE WHY WE'RE
TALKING ABOUT. THERE ARE OUR
POSITION IN THE WORLD WE WE
ADMIT ONE PERCENT OF THE
EMISSIONS I THINK ONE OF THE.
AS BENEFITS OF
VIA CALIFORNIA
IT ONE WE GO THE BOND WE GO TO
KATOWICE POLAND OR WE COME TO
PARIS ROOM ISN'T THAT WE SERVICE
A MODEL WE SERVICE A MODEL
SOMETHING THAT'S. THAT CAN BE
REPLICATED BY.
UTAH WHERE LITHUANIA OR.
SOUTH CD AND I'M.
AND ALL OUR EXPERTISE WHAT IS.
HOW CAN WE MAKE IT MORE
EXPORTABLE I GUESS IS MY? IS IS
MY CONCERN.
.
YOU KNOW I I THINK THE
LEGISLATURE HAS SAYS. ALREADY.
GOTTEN ITS FEET WET IN THE HOME
MANY WAYS IN THE. IN THE
INTERNATIONAL DISCUSSIONS AS AS
YOU INDICATED ABOUT BONTA AND
THAT.
THE GROUP THAT THAT WENT TO
PARIS I DIDN'T I DID NOT GO TO
THE BOND BUT I CERTAINLY BEEN
INVOLVED IN A NUMBER OF OTHER.
GLOBAL AYE DISCUSSIONS.
SINCE THAT SINCE PARRIS.
OF. CALIFORNIA'S LEADERSHIP IS
BASED ON A LOT OF THINGS.
BUT PROBABLY FIRST AND FOREMOST
IS THOUGH IS THAT PEOPLE KNOW
WHO WE ARE AND THEY LOOK AT US
AND THEY AND THEY TRIED IT SEE.
WHAT'S LED TO OUR BEING
SUCCESSFUL AND THEN THEY START
TO ASK QUESTIONS ABOUT WHY WE
DID WHAT WE DID. AND.
WE'VE HAD OF I KNOW AND MANY OF
AS MANY OF YOU AND YOUR
COLLEAGUES.
CERTAINLY WE AND MANY OF OUR
COLLEAGUES IN THE ADMINISTRATION
HAVE BEEN SPENDING MORE TIME
THAN I COULD HAVE IMAGINED A FEW
YEARS AGO. IN DIALOGUE WITH A
EXPERTS FROM OTHER PARTS OF THE
WORLD JUST TRYING TO UNDERSTAND
HOW. WE THINK ABOUT THESE ISSUES
AND WHY WE'VE DONE WHAT WE'VE
DONE AND HOW WE WERE ABLE TO DO
WHAT WE DID. I THINK WE CAN HELP
FOSTER THOSE KINDS OF DIALOGUES.
NOT ONLY AT THE POLITICAL AND
POLICY MAKING LEVEL.
BUT ALSO WITH THAT IT WITH
INDUSTRY AND ACTUALLY THERE IS A
LOT OF. ACTIVITY AND AND
CONTINUING LEADERSHIP DESPITE
THE FACT THAT THE UNITED STATES
ISN'T PRESENT IN ALL OF THESE
DISCUSSIONS DOESN'T SEEM TO HAVE
INHIBITED.
MANY.
GLOBAL BUSINESSES.
IN THEM RANGE OF DIFFERENT
OCCUPATIONS FROM TAKING THE
CLIMATE ISSUE SERIOUSLY AND.
AND TALKING TO EACH OTHER SO
DECISIONS THAT ARE BEING MADE
TODAY BY FOR EXAMPLE.
THE AUTO INDUSTRY ABOUT OUT
WHAT KINDS OF PRODUCTS THEY'RE
GOING TO BE BUILDING IN THE
FUTURE THEM WAVES OF
ANNOUNCEMENTS THAT WE'VE SEEN
ABOUT. OUT NEW MODELS OF ZERO
EMISSION ELECTRIC VEHICLES ARE
ARE HARD. RESPONDING NOT ONLY TO
THEM MANDATES HAVE CONSIDERING.
IT YOU DIDN'T ASK.
THIS
A KILLER QUESTION BUT IT SEEMS
TO ME THAT IT WOULD BE
APPROPRIATE FOR THE LEGISLATURE
TO ACTUALLY AT BE MORE EXPLICIT
AND INTENTIONAL ABOUT. AS
ENGAGING.
ON THEY.
INTERNATIONAL AND NATIONAL LEVEL
IN.
OUT REACH AND COMMUNICATION
ABOUT CALIFORNIA'S UP CLIMATE
PROGRAM BUT YOU'VE CERTAINLY
BEEN AS SUPPORTIVE AND AND THAT
I THINK THERE'S BEEN A LOT OF
VERY. GOOD DIALOGUE THAT'S
HAPPENED.
IN THE CONTEXT OF SOME OF THESE
INTERNATIONAL VISITS.
AND THE AND THE COPS AND IN
TERMS OF MAKING SURE THAT WHERE
WERE ALL COVERING THAT THE
GROUNDWORK COVERING THE BASES IN
TERMS OF.
MAKING THE REST OF THE WORLD
AWARE OF WHAT'S HAPPENING IN
CALIFORNIANS SEEKING OUT SEEKING
EVEN MORE DIRECT KINDS OF
PARTNERSHIP.
YEAH I IS WE IS WE GO THROUGH
THE SCOPING PLAN YOU KNOW I KNOW
THAT WE'RE GOOD INVITE FOR
TWELVE OR FIFTEEN STATES TO COME
TO SAN FRANCISCO IN SEPTEMBER.
AND YOU KNOW THAT'S IT'S
PAT QUITE AYE ONE SEATS EASY BUT
IT'S SIMPLER TO HER EXECUTIVE
TODAY EXECUTIVE ON THE GOVERNOR
YOUR TO GOVERN WE'RE GONNA TALK
AND YOU HAVE THE LEVEL WHERE YOU
HAVE TO LEGISLATORS. THEY'RE
TRYING TO CRAFT POLICY YOU KNOW
WE'RE GOING THROUGH THE SCOPING
PLAN AND WILL HOPEFULLY YOUR
GOAL TODAY WAS TO TO LOOK AT
SOME OF THE.
QUESTIONS HOW CAN WE TAKE UP
MODELING IN THAT ANALYSIS OF
WHATWE HAT'S REALLY SIMPLE
WHETHER THE PROGRAMS THAT ARE
PORTABLE THAT I CAN SIT WITH THE
SENATOR FROM MARYLAND IS SENATOR
FROM.
WITH MASSACHUSETTS AND SAY YOU
KNOW HERE'S THE LOW CARBON FUEL.
MAYBE IT'S NOT EVEN THE CAP AND
TRADE BECAUSE.
I DARE SAY NOT MANY STATES CAN
AFFORD TO HAVE A ROBUST AIRPORT
LIKE WE HAVE HERE CALIFORNIA
JUST THAT'S NEVER GONNA HAPPEN
RIGHT SO THEY'RE NECESSARILY
LOOKING AT OTHER.
.
OPTIONS.
DOCTOR BROWN.
I DON'T ABOUT MUCH TO MATT HAD
OTHER THAN TO AGREE WHICH IS FOR
THE GENERAL NOTION OF THINKING
ABOUT HOW.
CALIFORNIA'S DECISIONS AROUND
IT CLIMBED IT'S GONNA POLICIES
AFFECT YOUR ACTIONS IN OTHER
JURISDICTIONS HAS. BEEN A VERY
IMPORTANT PERSPECTIVE TO HAVE WE
OFTEN AS AN OFFICE WILL FOCUS ON
KIND OF COST EFFECTIVENESS BUT
CERTAINLY KIND OF KEEPING. THAT
PERSPECTIVE IN MIND KIND KNOWING
WHERE CALIFORNIA SITS.
IN THE GREENHOUSE GAS PICTURE
RELATIVE TO OTHER STATES IN
THINKING ABOUT HOW EACH
INDIVIDUAL POLICY REACTION MIGHT
INFLUENCE YOUR WHAT OTHER
JURISDICTIONS DO ISN'T AS A VERY
IMPORTANT PERSPECTIVE HAVE AS
WELL.
ALL THAT I THINK IT'S ALMOST A
MISTAKE TO ASK CALIFORNIA TO DO
ALL OF THE THINGS WE THINK
EVERYONE ELSE SHOULD BE DOING
BECAUSE AS YOU KNOW TO ME I
THINK THERE'S ALMOST NO WHERE
THAT HAS.
A BOARD WITH THE TECHNICAL
SOPHISTICATION OF OF THE BOARD
LEADERSHIP OF THE POOR THE
SENIOR STAFF OR THE UNIQUE LEGAL
AUTHORITIES THE BOARD ENJOYS
UNDER FEDERAL LAW.
THERE'S SOMETHING VERY DISTINCT
ABOUT WHAT WE ARE ABLE TO DO IN
CALIFORNIA.
A I THINK.
ASKING US TO DEVELOP THE EXACT
MODEL THAT OTHER PEOPLE USE IS
NOT THE BEST WAY TO LOOK AT THIS
QUESTION. I THINK WHERE WE CAN
LEAD ARE IN A WAY THAT ALMOST NO
ONE IS DOING GLOBALLY IS ON
TRANSPARENCY OF SUCCESS BOTH IN
OUR PLANNING EXERCISES AND
EVALUATIONS OF HOW WE'VE DONE IS
WE EXPERIMENT WITH IT WITH A NEW
MODEL FOR A VERY AMBITIOUS
TARGET.
AND I THINK THAT MAY BE THE MOST
IMPORTANT PART. OF WHAT THE
BOARD IS DOING AND COULD
POTENTIALLY IMPROVE ON.
TO HELP OTHER PEOPLE NOT JUST
TELL THE STORY OF THE THINGS
THAT WE'RE EXCITED ABOUT BUT TO
DOCUMENT SUBSTANTIATE THE
SUCCESSES AND THE MISSTEPS SO
THAT OTHERS WHO FOLLOW WITH FAR
LESS SOPHISTICATED INSTITUTIONS
HAVE GOOD EVIDENCE TO GUIDE
THEIR DECISIONS.
WELL HOPEFULLY IF WE'VE DONE
NOTHING ELSE WE'VE I ADDED TWO
AND HALF HOURS THAT TRANSPARENCY
DISCUSSION. ABOUT SO LET ME
CLOSE.
BEFORE I CLOSE. LET'S OPEN IT UP
FOR PUBLIC COMMENT.
I'M
THOSE WHO HAVE A COMMENT PLEASE
COME TO THE MICROPHONE.
I THAT WANT TO BRING TO THE
ATTENTION OF.
EITHER OF BOTH FOR THE
COMMITTEES.
.
WHAT WE SHOULD BE LOOK AT GOING
FORWARD PLEASE IDENTIFY
YOURSELF?
GOOD AFTERNOON I AM CUBAN REGNER
CENTER FROM THE ENVIRONMENTAL
DEFENSE FUND AND CURRENTLY A
LITTLE BIT SHORT FOR THIS
MICROPHONE.
WE HAD A COUPLE OF A REAL QUICK
POINTS THAT WE WANTED TO SHARE
TODAY AND THANK ALL OF YOU FOR
YOUR TESTIMONY AND FOR THIS
OPPORTUNITY TO HAVE THIS
HEARING.
iNG AT EDF OUR PERSPECTIVE IS
THAT THE CAP AND TRADE PROGRAM
IS DOING WHAT IT WAS INTENDED TO
DO IT IS THE BACKSTOPS THAT IS
PROVIDING. THE STRONGEST
POSSIBLE ASSURANCES THAT
CALIFORNIA WILL MEET OUR CLIMATE
TARGETS AND IT'S WORKING.
CARBON EMISSIONS ARE DECREASING
WERE AHEAD OF SCHEDULE TO MEET
OUR TWENTY TWENTY TARGET.
EVEN WHILE WE'RE SEEING ROBUST
ECONOMIC GROWTH.
A IN THE SCOPING PLAN REALLY IS
I I SORT OF TALK ABOUT IS THE
STRATEGIC PLAN OF HOW ALL OF THE
DIFFERENT TOOLS CALIFORNIA HAS.
WORKED TGETHER AS A TEAM TO
ADDRESS OUR CLIMATE AND OUR AIR
QUALITY ISSUES
THE CAP AND TRADE IS OBVIOUSLY
AN IMPORTANT PART OF THAT CHRIS
UP THE ONLY PLAYER ON THE TEAM.
WE HAVE A LOT OF OTHER PROGRAMS
THAT ARE EQUALLY IMPORTANT.
IN DRIVING US TO THOSE EMISSION
REDUCTION.
.
I THINK THE OTHER PIECE I WANTED
TO RAISE.
IS ABOUT OFFSETS IN A PDF WE
REALLY BELIEVE THAT OFFSETS HOW
CALIFORNIA ACHIEVE HIGH
INTEGRITY HARD TO REACH EMISSION
REDUCTIONS ARE OUTSIDE THE
CATHOLIC WE'VE TALKED ABOUT
TODAY. iNG WILL ALSO HELPING
TO KEEP THOSE COSTS UNDER
CONTROL. OF. THE PURCHASERS OF
THESE ARE YOUR OFFSETS HAVE
LEGAL REQUIREMENTS TO MAKE SURE.
THAT THESE REDUCTIONS ARE
PERMANENT.
AND SO THERE IS RISK THAT
THEY'RE TAKING TO ENSURE THAT
THESE ARE LONG TERM LASTING REAL
QUANTIFIABLE EMISSION REDUCTION.
.
THEY HAVE C! BEEN PORTICO
BENEFITS IN ADDITION TO REDUCING
CARBON EMISSIONS BUT ALSO
DELIVERING HABITAT RESTORATION.
IMPROVING WATER QUALITY IN AIR
QUALITY AND LOCAL COMMUNITY
BENEFITS AND I A SECOND CHAIR
NICHOLS DESIRE TO REALLY
INVESTIGATE HOW WE COULD BETTER
HAVE YOU KNOW URBAN OFFSET
PROGRAMS BECAUSE I THINK THAT
IS.
A GAP THAT IS MISSING.
A. AND LASTLY CALIFORNIA'S
EMISSIONS LIKE A CENTER
SIGNIFICANTLY BELOW THE CAP AND
WE REALLY SEE THIS IS A SIGN
EXCEPT OF SUCCESS.
UN MORE EMISSION REDUCTIONS
EARLIER IN THE PROGRAM LIKE
WE'VE SEEN IS GOOD NEWS FOR THE
ENVIRONMENT.
INCENTIVES CREATED LIKE THROUGH
BANKING ALLOWANCES HAS HELPED
DRIVE THESE EARLY REDUCTIONS.
BUT THERE IS A POTENTIAL FOR
AND.
OPPORTUNITY FOR CALIFORNIA TO
CONSIDER HOW AND THERE CAN BE
EVEN MORE PROGRAM STRINGENCY
POST TWENTY TWENTY.
BY DECREASING THE NUMBER OF
ALLOWANCES AVAILABLE AND I THINK
THAT THAT COULD DRIVE EVEN MORE
AMBITION AND EVEN GREATER
REDUCTIONS POST TWENTY TWENTY.
THANK YOU VERY MUCH.
BIGGEST SHARE MEMBERS THE
COMMITTEE.
CHAIR NICKELS AND.
AND PANELISTS.
WANTED TO THANK YOU OF MICHAEL
SAW WITH THE CALIFORNIA
MANUFACTURERS TECHNOLOGY
ASSOCIATION I THINK THERE'S A
FEW ASSUMPTIONS THAT WILL BE
HELPFUL TO. TO DRESS UP FRONT.
.
YEAH AS IT RELATES TO THE THE
DISCUSSION TODAY THE BACKUP
MATERIALS PROVIDED IT APPEARS
THERE'S AN ASSUMPTION THAT THEY
CAP AND TRADE PROGRAMS CAN AND
IT TWENTY THIRTY AND I THINK.
WHAT WE CAN SAY FROM EXPERIENCE
THUS FAR LOOKING AHEAD? THAT
THAT'S NOT LIKELY WHILE WE DON'T
HAVE A STATUTORY REQUIREMENT
BEYOND TWENTY THIRTY IS AN
EXECUTIVE ORDER.
ARE ON THE BOOKS THAT DOES
INDICATE A GOAL BEYOND AT TWENTY
THIRTY AS WELL AND CERTAINLY
EXPECTATION THAT THIS
LEGISLATURE.
MAY NOT THIS YEAR BUT YOU KNOW
IN COMING YEARS WILL WILL ALSO
WANT TO SEEK TO ADDRESS THAT SO
I DON'T THINK WE SHOULD LOOK AT
THIS IS A FINITE YOU KNOW ENDING
IN TWENTY THIRTY TYPE PROGRAM.
WE DO HAVE A GOAL THAT WE ARE
ARE ON TRACK TO MEET AND THAT IS
IMPORTANT YOU KNOW TO CONTINUE
TO MONITOR THAT IS THE CHAIR.
A AND IN THE IN THE BOARD HAVE
ALSO BEEN VERY DILIGENT COULD
WHEN TO LOOK AT.
IN ADDITION TO THAT.
YEAH THERE THERE'S AN ASSUMPTION
THAT I DID WERE SOMEHOW YOU KNOW
LOOKING TO RAISE PRICES OR MAKE
IT MORE COSTLY
TO COMPLY AND I THINK THE CHAIR
NOTED EARLIER THAT. THAT'S NOT
THE POINT OF THIS PROGRAM THE
POINT IS PROGRAMS TO DO YOU
REDUCE EMISSIONS AND THAT SHOULD
BE THAT CONTINUE TO BE THE
FOCUS.
SO WHEN WE LOOK AT LOOK AT THE.
UNUSED ALLOWANCES ARE CURRENTLY
IN THE MARKET.
TALKING ABOUT REMOVING THOSE WE
KNOW THAT ONE EFFECT IS GOING TO
BE IS TO DRIVE UP THE PRICES.
THAT DRIVES UP THE COST OF
COMPLIANCE AND IS THE CHAIR. I
THINK WE'VE TALKED ABOUT MANY
TIMES BEFORE REPRESENTING THE
LARGEST MANUFACTURING EMPLOYMENT
ANY LEGISLATIVE DISTRICT.
I AND THIS BODY. A NOSE NINA MAY
FACTORS ARE VERY SENSITIVE TO
COSTS AND THEY WILL MAKE
DECISIONS ABOUT WHERE TO LOCATE.
NEW FACILITIES.
SO WHERE THEY'RE GONNA MAKE NEW
INVESTMENTS WHERE THOSE JOBS ARE
GOING TO. BE ROUTE RELOCATED TO
POTENTIALLY.
I SO THAT DOES HAVE AN IMPACT ON
CALIFORNIA'S ECONOMY AS WELL I
THINK THE BOARD HAS BEEN VERY
DILIGENT.
AND THE MOST WE PROTECT ON THE
MOST RECENT UPDATE TO THE
SCOPING PLAN IN THE CAP AND
TRADE DISCUSSION.
TWO LOOKING AT THOSE CONSIDERING
THOSE FACTORS.
MEGACITY ISSUE OF INDUSTRY
ASSISTANCE.
YEAH IT'S BEEN BROUGHT UP WITH
SEVERAL TIMES AND CONVERSATION
AND WE KNOW THERE MANY COMMENTS
BY. PANELISTS INVITED HERE YOU
KNOW PREVIOUSLY REGARDING
REDUCING THE INDUSTRY ASSISTANCE
ARE OR NOT INCREASING INDUSTRY
ASSISTANCE BACK UP TWO HUNDRED
PERCENT FOR THE THIRD COMPLIANCE
PERIOD.
WELL I THINK IT WAS NOTED
EARLIER BY BY A MISS NICHOLS
THAT. IT IS HELP SMOOTH THINGS
OUT BETWEEN NOW AND AB THREE
NINETY EIGHT MANDATED. A HUNDRED
PERCENT INDUSTRY ASSISTANCE AT
THE TWENTY TWENTY ONE TO TWENTY
THIRTY TIMEFRAME SO.
IT DOESN'T MAKE SENSE MORE
PERSPECTIVE. TO DROP IT DOWN AND
THEN BRING IT BACK UP THAT
INCREASES VOLATILITY CREAM
CREASES UNCERTAINTY YOU KNOW THE
THAT ARE BAD THINGS FOR
MANUFACTURERS IN THE STATE
CALIFORNIA BOUT THINKS FOR
HEALTH RISK CONNIE.
AND LASTLY ON THE BANKING RULES.
I OR BAKING ISSUE THE ROOM THE
HOLDING LIMITS PREVENT COMPANIES
IS I THINK THIS RETURN NICHOLS
NOTED EARLIER. FROM HOLDING
UNLIMITED NUMBER OF ALLOWANCES
THIS ISN'T SOMETHING THAT THEY
CAN STOCK UP ON NOW.
AND HOLD INDEFINITELY
FINANCIALLY IT'S NOT A.
IT'S POSSIBLE THING TO DO FROM A
SHAREHOLDER PERSPECTIVE.
NOT IN ADDITION THAT EIGHT
TIES UP A LOT OF MONEY.
THE COMPANIES WANT TO USE TO AND
INVEST IN THE COMPANY TO GROW.
BUT CREATE NEW PRODUCTS EXETER
ASOKA IT DOES IT LOGICALLY
DOESN'T MAKE SENSE THAT THEY
WOULD CONTINUE TO DO SOMETHING
TO THE POINT THAT THEY ARE.
RESTRICTING ANSWER NUMBER OF
ALLOWANCES IN THEIR ACCOUNTS YOU
COULD AND WOULDN'T LEGALLY THEY
CAN'T UNDER THE REGULATIONS SO.
WITHOUT WE WOULD JUST YOU KNOW
ENCOURAGE YOU HAVE CONTINUED.
OVERSIGHT OF THIS COMMITTEE
WITH REGARD TO.
THE SCOPING PLANNED IT
IMPLEMENTATION OF ALL THESE
DIFFERENT MEASURES INCLUDING CAP
AND TRADE.
NOT WE APPRECIATE YOUR NICHOLS
LEADERSHIP ON THIS ISSUE I WILL
LOOK FOR TO KEEP YOU WORKING
WITH YOU BUT THERE ARE SOME
THINGS THAT YOU KNOW THAT HAVE
BEEN RAISED IN THIS DISCUSSION
THAT. WOULD CAUSE CONCERN FOR
MANUFACTURERS AND WE WOULD JUST
CAUTION.
TAKING ANY ADDITIONAL ACTIONS IN
THOSE AREAS.
THANKS I CAN.
I UP MIGUEL'S MARLA HERE WITH
THE GAWKING GROUP ON BEHALF THE
CALIFORNIA COUNCIL FOR
ENVIRONMENTAL ECONOMIC BALANCE.
.
IT WE LARGELY AGREE WITH.
WHAT MISTER SHAW STATED FROM
SEEING TODAY?
WE WANT HOW CLEAR FOR THE
ASSISTANCE FACTOR THING WE SAY A
HUNDRED PERCENT ASSISTANCE BACK
ALL THE TIME.
I REPRESENTS NOT ACTUALLY
HUNDRED PERCENT.
AIR BE BENCHMARKED INDUSTRIES
IT'S ABOUT YOU KNOW AND THEN
YOUR SISTER YOUR HUNDRED PERCENT
ACTUALLY NINETY PERCENT.
NONE THAT DECLINES EACH YEAR
WITH THE CAP THE TWO PERCENT TWO
PERCENT TWO PERCENT WHO HAVE
TWENTY THIRD THIRD POINT WHITE
OR PERCENT OR PERCENT SO ON.
SO THE END OF THE YEAR BY TWENTY
THIRTY YOU YOU'RE TALKING UNDER
THIRTY PERCENT OF OF YOUR A
HUNDRED PERCENT ASSISTANCE
FACTOR.
HE'S ACTUALLY VERY OF YOUR
ALLOWANCE IS NEEDED TO TO STAY
BUSINESS AS USUAL WE WILL BE
VERY.
I'M TODAY IT'S IT'S CLOSE TO
SEVENTY FIVE PERCENT.
SO SO IN THE THIRD COMPLIANCE
PERIOD WHICH IS GONE FROM
SEVENTY FIVE TO FIFTY PERCENT
YOU YOU WERE STILL. NO SAYING
THAT IN THE SMOOTH TRANSITIONS
IMPORTANT AS AS MENTIONED
EARLIER. THE JUST HARVEY PENICK
CLEAR THAT THAT THE HUNDRED
PERCENT IS NOT A HUNDRED PERCENT
AND AND AND YOU KNOW THEY'RE
THEY'RE PEOPLE WHO ARE NOT AS
INVOLVED IN THIS PROGRAM THAT
SEE THAT HUNDRED PERCENT THINK
THAT INDUSTRIES GETTING A FREE
RIDE.
YOU KNOW THEY'RE NOT IT IT IT
MUST YEAR THAT THE THE BENCHMARK
FACILITY IN YOUR THE BEST
FACILITY IN IN THAT INDUSTRY IN
THAT SECTOR.
NOTE YOU'RE YOU'RE STARTING
BELOW THAT NINETY PERCENT AND
THEN IT DECLINES ANNUALLY.
.
BUT IF WE WANT ONE LAST POINT
AND THEN WE'LL FOLLOW UP WITH
EACH OF THE THE CHAIR AND THE
MEMBERS AND COMMITTEE. STAFF.
.
THE CABIN TRAYS BUT. PROGRAM IT
IS BEEN THE CENTER OF THIS AND
COST THE CAP TRADE PROGRAM THAT
ALLOWS PRICE.
THE BEEN THE CENTER AND THAT'S
THE COSTA CARBON THAT PEOPLE
HOLD OUT THERE FOR CALIFORNIA
BUT WE HAVE OTHER MARKETS IN THE
IN THE SCOPING.
WITH THE RPF WHICH IS THE
MARKET.
COSTS CARBON THERE'S.
NOTE ROUGHLY TWICE SOMETIMES
LOVE IT MORE THAN THEN THE CAP
TRADE COSTS REVEAL CFS THAT'S
ALSO MARKET THAT PEOPLE BUY
CREDITS.
THAT PRICE RIGHT NOW I THINK
EARLY JANUARY WASBOUNCING FROM
NINETY TO HUNDRED NINE DOLLARS.
SUBSTANTIALLY MORE THAN CAP AND
TRADE PROGRAM. SO WE NEED TO
LOOK AT IS MAYBE AN AGGREGATED
PRICE ACROSS THE ENTIRE SCOPING
PLAN.
THE PEG BECAUSE THE CARBON IN
CALIFORNIA BECAUSE IT'S NOT THAT
CAP AND TRADE ALLOWANCE ABOUT.
THAT IS NOT THE CAPITA THAT THAT
THAT'S A GOOD SIGNAL.
FOR INVESTMENT AND OTHER THINGS
BUT IT'S NOT THE ONLY PRICE IN
THE STATE.
THERE THERE MULTIPLE MARKETS
THAT ARE VERY VISIBLE AND THEN
THERE'S A LOT OF RAGS THAT ARE
AS VISIBLE YOU KNOW THAT THE
SCOPING PLAN HAS. LAW POLICIES
OUT THINK THE SLC P. STUFF WILL
BE AS VISIBLE.
AS THE GOTTEN TRADE LCF S. OR
RTS BUT I THINK AS WE LOOK AT
THIS WE CAN USE THOSE THREE. AND
COME UP WITH AN AGGREGATED IN
AND THERE ARE BIG CHUNK OF THE
EMISSION REDUCTIONS TO TO FIGURE
OUT A BETTER PRICE THAT WE'RE
NOT HANGING ONTO. WE GOT IT WE
ARE REALLY MOVE THAT CAP AND
TRADE VALUE UP TO INCREASE
PRICES.
MOST OF HIS ABILITIES AND AND
INDUSTRIES ARE COMPLYING WITH
MULTIPLE REGULATIONS THROUGHOUT
THE SCOPING PLAN AND SO THE
COSTA CARBON IS IS AGGREGATED
NOT SINGULAR STUFF. INCREASE
YOUR TIME IN AND WAS I THINK YOU
THINKING NEXT.
I JOHN COSTANTINO BEHALF THE
LARGEST OFFICE AT PROVIDERS IN
CALIFORNIA WANDA ECHO FEW THE
COMMENTS THAT WERE MADE TODAY
INCLUDING THAT. OFFSETS PROVIDE
REAL PERMANENT REDUCTIONS IN THE
SECTORS THAT ARE NOT OBVIOUSLY
REGULATED BY THE CABIN TRADE.
THERE'RE ENFORCEMENT IN
SEQUESTRATION PROJECTS THAT ARE
NEEDED TO GET THE GLOBAL. OF.
GOLD THAT THAT'S THAT'S ACHIEVED
THAT WITH ONE BE ACHIEVED.
ALSO THAT THE ALTERNATIVE TO.
SYNOPSIS COMPLIANCE INSTRUMENT
ITS ALTERNATIVE IS NOT A MORE
MISSION.
IT'S AN ALLOWANCE
SHE'S THE HIGHER PRICE
COMPLIANCE OF. WANTED LIEU THANK
THE LEGISLATURE FOR THREE NINETY
EIGHT WHICH THAT WHICH.
PUT OFFSETS IN STATUTORY ARE AND
WE LOOK FORWARD TO THE OFFSET
THE TASK FORCE LOOKING AT BOTH
URBAN AND RURAL. I'VE PROTOCOLS
THAT CAN HELP THE CALIFORNIA.
I UP BY HOUSING WITH THE
AMERICANLUNG ASSOCIATION
CALIFORNIA AND WANT TO MAKE THE
POINT OF COURSE THE CLIMATE
CHANGE IS CREATING A PUBLIC
HEALTH CRISIS.
AND THAT ARE CLIMATE POLICIES
ARE ARE VITAL TO PROTECTING NOT
ONLY OUR HEALTH AND YOUR QUALITY
CALIFORNIA BUT LEADING EFFORTS
AROUND THE GLOBE. AND WE ARE WE
ARE PROUD OF THE LEADERSHIP OF
THE AIRBORNE OR PRODUCT YOU'RE
LOOKING CHAIR NICHOLS
LEADERSHIP.
AND WE HAVE SUPPORTED.
THE SCOPING PLAN DRAFT.
URGE THE SCOOBY PLAN APPROVAL
LAST MONTH IS AN IMPORTANT STEP
FORWARD IN LAYING OUT OUR VISION
AND OUR OUR GOALS FOR TWENTY
THIRTY.
WE ALSO COMMUNICATORS AREAS HERE
IS WHERE THE PLAN TO BE STRENGTH
I THINK MAY THOSE BEEN DISCUSSED
TODAY. ARE WE APPRECIATE THE
NEED FOR OUR CALVET CAREFUL
REVIEW OF ANNUAL PROGRESS AND
REVIEWING OTHER CAPITAIS PROGRAM
IS TRULY MEETING ITS GOALS. BUT
WE NEED WE ALSO NEED TO KEEP
PUSHING FOR DEEPER REDUCTIONS IN
THE TRANSPORTATION SECTOR AS AS
YOU KNOW FIFTY PERCENT OF. OUR
GDP IS COMING FROM
TRANSPORTATION SECTOR AND THAT
MEANS WE NEED TO FOCUS ON HOW WE
CAN GET MORE ELECTRIFICATION
ACROSS THE BOARD. AND LIGHT DUTY
AND HEAVY DUTY.
WE NEED INCREASE FOCUSED ON
THIS VMT REDUCTION ELEMENT
APPRECIATE EXPRESSION TODAY
LOOKING FOR MUCH MORE WAYS TO
PROMOTE A THREE THREE SEVENTY
FIVE. I IMPLEMENTATION AND AND
PROMOTING THREE SEVENTY FIVE
STRATEGIES AND MORE LEADERSHIP.
AT THE LOCAL LEVEL.
AND.
WE NEED A HIGHER.
CARBON REDUCTION.
COVER INTENSITY REDUCTION
TARGET AND THEY'LL SEE A FAST
AND CURRENTLY ANTICIPATED.
OVER EIGHTEEN PERCENT AND WE
WOULD SAY OVER TWENTY PERCENT.
FOR TWENTY THREE.
AND.
OF COURSE WE NEED TO KEEP AN
EYE ON MAINTAINING OUR ARE
IMPORTANT CALIFORNIA VEHICLE
AUTHORITY AS WAS.
WE OPEN HEARING DISCUSSING THAT.
AND WE WE LOOK FORWARD TO
SEEING MORE HEALTH ANALYSIS OF
THE WHOLE PACKAGE OF MEASURES
AND THAT'S SOMETHING THAT THE
BOARD DISCUSSED LAST MONTH I GET
SUPPORT FOR THE. SENATE ALSO
KEEP AN EYE ON OF THE ANALYSIS
THAT'S BEING DONE BOTH THAT THE
WHOLE OF THE WHOLE PACKAGE OF
MEASURES AS INDIVIDUAL PROGRAMS.
MOVE FORWARD AT THE BOARD THAT
WE'RE LOOKING AT THE HEALTH
PROGRESS THEY WERE MAKING. AND
THEN JUST FINALLY WERE WERE VERY
COMMITTED TO THE MEASURES AND
AND EIGHTY SIX ONE SEVEN TO
REDUCE LOCAL POLLUTION.
ALONGSIDE R. GHG EFFORTS AND
MAXIMIZING.
THOSE THE REDUCTION IN MULTIPLE
POLLUTANTS MAKSUD AND CLIMATE IS
A KEY PROMISE OF THIS PLAN AN
EGG AND A KEY ELEMENT THAT WE
ALSO NEED TO BE EXPORTING TO
OTHER AREAS THAT ARE NOW.
RUSSIAN.
CALM REFLECTION CALIFORNIA THANK
YOU FOR SHARING YOUR STAFF FOR
THE STRONG WILL FOCUS HEARING.
ALSO TO THE AIR RESOURCES BOARD
FROM MARY ON DOWN THERE STAFF
FOR THE ENGAGE IN THAT KIND OF
LAST MANY MONTHS ON THIS ISSUE
THE LA SHOW. OF COURSE HAVE TO
RECOGNIZE THE STRONG TEAM EFFORT
FOR EVERYBODY THE INDEPENDENT
MISSIONS MARKET ADVISORY
COMMITTEE.
SO A. I THINK WITH THAT WHAT
WE'RE SEEING IS THAT THE COUNTRY
GRESHAM YOU WOULD LIKE TO SEE
FROM PROCESS LIKE THIS.
THERE'S BEEN A LOT OF
DISCUSSION ON THE ISSUE OF HOW
WE SHOULD A FORM CAP AND TRADE
AND SCOPING FAN IN GENERAL I
THINK YOU'RE SEEING THE KIND OF
PROGRESS AND THINGS LIKE.
WE'VE ACCEPTED THE FACT THAT
THERE IS A MISMATCH BETWEEN THE
NUMBER OF PERMITS AND SUPPLY AND
DEMAND AND SIR MOVED ONTO HOW IF
ANY HOUSE WE ADDRESS A SIGH IT.
ANYWAY AREN'T WE ALSO AGREE WITH
WHAT SEEMS BE CONSENSUS FROM
SPEAKERS AND ON THE PAL THAT
THERE'S A NEED FOR ADDITIONAL.
COMMITTEE POLICIES TO KEEP HELP
HELPING PUSH EMISSIONS OUT OF
THE SYSTEM.
WE HAVE A LOT OF THOUGHTS AND
SUBJECT BUT IN ORDER TO KEEP
THIS MOVING ALL I WILL JUST SAY.
NEXUS COMPILED LOTS THOUGHTS ON
A CIVIL THE ISSUES DISCUSSED
HERE AS WELL AS HOW WE CAN.
UPGRADING IMPROVING SYSTEM INTO
A BLOG FORMS BILL ONE WEBSITE WE
SHARE WITH WITH STAFF.
AND WE'D BE HAPPY TO.
SURE IF ANYBODY ELSE ON.
CONSOLIDATING LOG THE DISCUSSION
WE'VE HAD BILLBOARD NEXT
IMPULSIVE.
GOOD AFTERNOON COMMITTEE ANY
VENDOR WORK WITH THE CALIFORNIA
ENVIRONMENTAL JUSTICE ALLIANCE
I'M I'D LIKE TO JUST RAISE A FEW
KEY ENVIRONMENTAL JUSTICE
CONCERNS WITH THE SCOPING PLAN
THAT I.
HAVEN'T HEARD OR I'VE HEARD
PIECES DISCUSSED TODAY I'M ONE
OF THE MOST CRITICAL ISSUES THAT
HAS BEEN THE SUBJECT OF LOVE OF
DISCUSSION IS.
THE INTERPRETATION OF AYE
CAPTAIN TREAT IS A DIRECT
EMISSION REDUCTION.
IN COMPLIANCE WITH AB ONE
NINETY SEVEN.
WE FEEL LIKE THAT IS A
MISINTERPRETATION OF BOTH AB ONE
NINETY SEVENTH INTENT FROM THE
LEGISLATURE AS WELL AS.
NOT SEEING FULL COMPLIANCE
WITHIN PROVISIONS WITH IN THAT
BILL THAT WAS ENACTED AYE LAST
YEAR WITH S. B. THIRTY TWO.
DECKS CURRENT SCOPING PLAN
IDENTIFIES CAP INTRIGUED AS A
DIRECT EMISSION REDUCTION
MEASURE.
WHEREAS WE WE FEEL LIKE IT IS
IS CLEARLY AN INDIRECT MEASURE.
WE FEEL LIKE.
DOES DIRECT MEASURES ARE BOTH
NOT THE KIND THAT VIGT ONE
NINETY SEVEN WAS INTENDED TO
ENACT ARE THE ONES THAT WILL GET
THE BIGGEST.
IMPROVEMENTS IN ENVIRONMENTAL
JUSTICE COMMUNITIES IN TERMS OF
WILL TEACH THE EMISSION
REDUCTIONS AS WELL AS CO
POLLUTANT DECREASES AS WELL
PROVIDE ADDITIONAL COMPLEMENTARY
MEASURES WITH WE ALL TALKED
ABOUT NEEDING. AND WE'D LIKE TO
SEE FURTHER DISCUSSION ON AB ONE
NINETY SEVEN IMPLEMENTATION.
AND. WE ALSO ARE ARE CONCERNED
ON THE TERRACE CRACKED THAT
THERE WILL BE LIVE STAKEHOLDER
CONCERNED ABOUT THE TYPES OF
INTERNATIONAL FOREST OFFSETS
THAT WERE DISCUSSED AND OFF THE
AYE AS WE AS WE. LOOK AT THE
OFFSET QUESTIONS AND ASA
COMPLAIN TASK FORCE WE SINCERELY
HOPE THAT AS WE CONTINUE THE
DISCUSSIONS ON OFFSETS WE DON'T
GO DOWN THE PATH IN PARTICULAR
INTERNATIONAL FORCE OFFSETS
WHICH HAVE A VERY. CONCERNING
HISTORY OF HUMAN RIGHTS ABUSES
INTERNATIONALLY.
I'M ADDITIONAL ISSUE THOUGH IT
RAISES JUST TRACKING OF
EMISSIONS ENVIRONMENTAL JUSTICE
COMMUNITIES UP ADDITIONAL AREA
WE WOULD LIKE TO SEE
IMPROVEMENTS. ARE WE'D LIKE TO
SEE ONGOING REPORTING AND
ANALYSIS AROUND WHETHER GHG AND
CONCLUDING THE MISSIONS ARE
RISING OR FALLING IN
ENVIRONMENTAL JUSTICE CAN USE
AND DISADVANTAGED NEWS IN
PARTICULAR. ON THE DATA THAT'S
AVAILABLE RIGHT NOW DOES
ACTUALLY GET TO THAT LEVEL OF
SPECIFICITY.
AND I WOULD SAY THAT THIS THIS
REALLY DOES ONE THING THAT WOULD
REALLY ENHANCE THAT KIND OF
ANALYSIS IS OF THE ADDITION OF
THE MARKET DATA. ON SOME REALLY
KNOW WHAT FIRMS ARE DOING IN OUR
OUR CONCERN CONTINUES TO BE THAT
FROM ENVIRONMENTAL JUSTICE
PERSPECTIVE YOU'LL HAVE
LOCALIZED EMISSION INCREASES
WHILE OUR AGGREGATE AYE MISSIONS
ARE GOING DOWN.
THAT WILL HAVE
ONGOING AND TO GIVE IMPACT.
I'M AND FINALLY I JUST WANT TO
SAY WE AT GO AND APPRECIATE THE
CONCERNS IN THE CHAIR ABOUT THE
THIRD COMPLINCE PERIOD AND YOU
FEEL LIKE.
REDUCING INDUSTRIAL ASSISTANCE
FACTORS.
YOU KNOW WE HAVEN'T SEEN THE
ANALYSIS TO SUPPORT I NEED AND
WE ALSO FEEL LIKE THEY'RE
ACTUALLY HASN'T BEEN A ROBUST
DISCUSSION AT THE BOARD LEVEL SO
WOULD LIKE TO SEE BOTH OF THOSE
THINGS BEFORE.
THANK YOU.
GOOD AFTERNOON CHAIRMAN AND
MEMBERS. KAREN FOR NOW. AND MY
NAME IS NICK A FORUM WITH THE
COALITION FOR RENEWABLE NATURAL
GAS WE CAPTURE METHANE EMISSIONS
FROM DAIRY WASTE WATER AND SOLID
WASTE. FACILITIES AND TURN IT
INTO A IN ULTRA LOW CARBON OR
CARBON NEGATIVE TRANSPORTATION
AND HEATING FUEL. AND I WANTED
TO ANSWER QUESTIONABLE EARLIER
IN THE HEARING AT CHAIRMAN I
CAST YOU ASKED.
HOW MUCH REAL NATURAL GAS IS
AVAILABLE TO REPLACE NATURAL GAS
ON THE SYSTEM?
OUR ESTIMATE IS CURRENTLY AT
TWO HUNDRED BILLION CUBAN
ECONOMIC EAT ANNUALLY THAT'S TEN
PERCENT. OF THE OVERALL USE IN
CALIFORNIA
I'M HAPPY TO PROVIDE YOU WITH ON
OUR STAFF IT'S AND I'M BACK UP
DATA TO SUPPORT THAT.
AND.
WE LIKE TO THINK THEIR RESEARCH
HAS WORD FOR SOME VERY POSITIVE
COMMENTS ON THIS GIVING PLAN.
THAT UNDERSCORE THE IMPORTANCE
OF OUR ENERGY IN THIS CLIMATE
CONVERSATION.
THE CLAIM THESE GIVING PLAN
SAYS MOVING TOWARDS RENEWABLE
NATURAL GAS WILL HELP CALIFORNIA
ACHIEVE ITS TWENTY THIRTY
CLIMATE TARGET.
THAT WE MUST MOVE TOWARD CLEANER
SPACE AND WATER HEATING FUELS
WHICH INCLUDES USING OUR NEW OF
ALL NATURAL GAS AND REPLACING
ALSO FEELS. THAT ARE NOBLE
NATURAL GAS CAN REDUCE SHORT
LIVED CLIMATE POLLUTANTS AND
STATE POLICIES SHOULD SUPPORT
THIS EFFORT.
AND ONE CLARIFICATION WE'D LIKE
TO MAKE ON PAGE FORTY SIX OF THE
SCOPING PLAN AND THERE IS THE.
PEOPLE THAT LISTS THE RELATIVE
COST
OF THE COMPLEMENTARY MEASURES
AND.
UNDER A NEW IS GIVING PLAN ON IT
DOES LIST THAT A FIVE PERCENT
RENEWABLE GAS STANDARD WOULD
COST FIFTEEN HUNDRED DOLLARS ON
A METRIC TON THIS IS A
MISREPRESENTATION OF THE COST
AND WE BELIEVE.
THIS USES AN ASSUMPTION THAT IT
WOULD BE MET USING RENEWABLE
HYDROGEN WHICH IS AN EMERGING
TECHNOLOGY A NASCENT TECHNOLOGY
THAT'S THAT'S PRETTY FAR OFF IN
OUR OPINION. AND IF YOU WERE TO
DO THE SAME ANALYSIS USING UP BY
A METHANE WHICH IS THAT BUSH OF
THE PROJECT THAT WE PRIMARILY
REPRESENT. AND WE BELIEVE THIS
NUMBER WOULD BE UNDER A HUNDRED
DOLLARS A MEASURE.
AND HAPPY TO PROVIDE.
THE BACKUP DOCUMENTATION FOR
THAT AND IT'S IMPORTANT BECAUSE
IF YOU LOOK AT THE COMPARATIVE
ANALYSIS THE THEOREM YOU KNOW.
THE NUMBERS COME OUT TO ABOUT A
HUNDRED FIFTY DOLLARS PER METRIC
TON FOR THE LCF BASS ONE SEVENTY
FIVE FOR THE RPI SO JUST SO YOU
HAVE AN IDEA FOR SCALE. I'M
UNDER HUNDRED DOLLARS AND. EARN
IT WILL NOT STANDARD THANK YOU
VERY MUCH THANK YOU.
UNDER TEMPLEMAN FROM THE COVER
MARKET COMPLIANCE ASSOCIATION.
I GUESS ONE JUST COUPLE OF
OBSERVATIONS FOR THE PANELS OR
FOR THE COMMITTEE.
FIRST OF ALL THAT YOU KNOW IF IF
YOU LOOK BACK TO LAST SUMMER
WHEN WE WERE DISCUSSING THE
LEGISLATION. THERE WERE SOME
FEARS BROUGHT UP BY SOME PEOPLE
THAT. THE MARKET WOULD SPIKE
THAT THERE WOULD BE ACCORDING.
I CAN TELL YOU BEING IN THE
MARKET THAT HAS NOT HAPPENED
WERE SAYING ABOUT THIRTY FIVE
CENTS OVER THE FLOOR. THERE'S
BEEN NO RUSH TO AFFORD THESE
ALLOWANCES BECAUSE I THINK
PEOPLE RECOGNIZE AS LONG TERM
PROGRAM AND IT IS WORKING.
VIA THING I WOULD SAY IS THAT.
YOU KNOW THE AUCTION MECHANISM
AND THE THING SET UP BY AIR BE
SUCH ASYOU KNOW ON SOLO OUNCES
AFTER TWO YEARS.
GO TO THE A PCR IS A VERY.
HEALTHY WAY OF THE PROGRAM
ESSENTIALLY SELF ADJUSTING.
SO IF THE PROGRAM GETS OVER
SUPPLIED AS ONE OF THE CONCERNS
OF THE BROUGHT UP HERE. AUCTIONS
START TO NOT CLEAR. THE
ALLOWANCES WOULD EFFECTIVELY BE
REMOVED FROM THE MARKET THROUGH
THE MARKET FORCES. OF THE
AUCTION AND THE PRICING.
SO THE MARKET DOES WORK AND IT
CAN WORK AND CAN ADJUST ITSELF
QUITE WELL. WITHOUT ANY NEW
MECHANISMS
AND IN FACT AS WE LOOK AT THE
MARKET GOING FORWARD OVER THIS
NEXT YEAR. THERE ARE POTENTIALLY
YOU MIGHT EVEN SEE ANOTHER
OPTION THAT DOESN'T CLEAR THE
FULL VLUME. THAT WOULD NOT BE
THE END OF THE WORLD WOULD NOT
BE THE SKY FALLING. IT WOULD
JUST BE THE MARKET SORT OF
BALANCING. THE SUPPLY DEMAND AND
AND WORKING THE WAY IT SHOULD
SELL.
YOU KNOW IF YOU HAVE ANY
QUESTIONS ON THAT THERE ARE A
LOT OF FIRMS INCLUDING OURS AND
OTHERS.
THE DO YOU SUPPLY DEMAND
ANALYSIS PRICE FORECASTS THAT
WOULD BE VERY HAPPY TO SHARE
THIS INFORMATION WITH ANYBODY.
ON THE COMMITTEE.
YOU KNOW FOR FREE IT'S NOT
SOMETHING THAT THEY SORT OF.
WARDEN SO UNIFIED BODY WANTS
INFORMATION PLEASE REACH OUT.
THANK YOU.
CHAIRMAN MEMBERS MICHAEL BOCA
DOROTHY AG ENERGY CONSUMERS
ASSOCIATION.
I'M GONNA GIVE YOU A SLIGHTLY
DIFFERENT TAKE ON THE RENEWABLE
NATURAL GAS POTENTIAL THE STATE
THIS WAS ACTUALLY DONE BY THE
ENERGY COMMISSION AS PART OF. A
SENATOR LARA'S THIRTEEN EIGHTY
THREE.
IT'S NOT A GLORIFIED ANALYSIS
THEN INDEPENDENT ANALYSIS OF
WHAT THE RENEWABLE NATURAL GAS
POTENTIAL IS. THE WHOLE CHAPTER
ON RENEWABLE NATURAL GAS UNTIL
TO ANSWER THE QUESTION YOU ASKED
OF CHAIR NICHOLS.
THEY PUT IT AT ABOUT THREE TO
FOUR PERCENT OF THE NATURAL GAS
SYSTEM IN CALIFORNIA IT'S MUCH
LESS THAN WHAT THE RENEWABLE
NATURAL GAS COALITION DECIDED.
KEEP IN MIND IT'S NOT BEST
UTILIZE TO REPLACE NATURAL GAS
IN OUR SYSTEM.
IT'S BEST UTILIZED TO REPLACE
DIESEL FUEL IN THE
TRANSPORTATION SECTOR. THE IDEA
THAT WE'RE GONNA BRING IN
RENEWABLE NATURAL GAS MOTHER
STATES OR MANUFACTURE RENEWABLE
GAS FROM.
ELECTRICITY DOESN'T MAKE SENSE
WHEN YOU ARE TRYING TO REPLACE
NATURAL GAS ONCE IT'S IN THE
SYSTEM IS METHANE.
IT BURNS THE SAME AS THE SAME
EMISSIONS PROFILE AS FOSSIL
NATURAL GAS.
SO THE REAL VALUE OF USING
RENEWABLE NATURAL GAS IS USING
IT AS TRANSPORTATION FEEL IN
CALIFORNIA. SO ALL LEAVE THIS
WITH YOU AND STAFF IT'S OF FROM
THE ENERGY COMMISSION AS PART OF
THE RIGHT FOR. SENATE BILL
THIRTEEN EIGHTY THREE REQUIRED
THEM TO DO THAT AND IT'S A A
GOOD ASSESSMENT BECAUSE IT LOOKS
AT THE POTENTIAL. IN THE LOOKS
AT THE VOLTS GIVES ME LOOKS AT
THE TECHNICAL POTENTIAL THEN
LOOKS AT THE ECONOMIC POTENTIAL
AND IT'S REALLY IMPORTANT TO
FOCUS ON THE LATTER.
YOU CAN MAKE RENEWABLE NATURAL
GAS FROM FORESTRY BIOMASS IT
JUST NOT ECONOMIC TO DO SO IT
DOESN'T MAKE SENSE THAT. ALL
LEAVE THIS WITH YOU AND STAFF.
GIVE TO THAT APPRECIATED START
THINKING.
THANK YOU.
WHAT WILL CLOSE THE PUBLIC
HEARING AND LET ME SAY IN
CLOSING THAT IN TWO THOUSAND
SIX?
THE TITANS BEFORE US
SAID A SALE CALIFORNIA'S
RESPONSE TO CLIMATE CHANGE AND
NASTIER RESOURCE BOARD TO
PROVIDE LEADERSHIP IN DESIGNING
IN SUCCESSFULLY IMPLEMENTING. A
AB THIRTY TO ACHIEVING THE GOALS
OF AB THIRTY TWO IS A GREAT. BUT
COMPLICATED SUCCESS STORY BASED
ON A COMBINATION OF REGULATIONS
A MARKET BASED COMPLIANCE
MECHANISM AND UNFORTUNATELY A
SEVERE RECESSION. THAT WE HAD.
AS WE LOOK FOR TO ACHIEVING OUR
TWENTY THIRTY GOALS THIS
LEGISLATURE IN THE AIRPORT NEED
TO WORK JOINTLY TO REFINE OUR
TOOLS ARE RESPONSES TO ENSURE
OUR SUCCESS. IN CONCERT AND
CONTINUE CALIFORNIA'S
LEADERSHIP.
AND AS WE KNOW IN THE NEXT.
COP CONFERENCE IN KATOWICE
POLAND OF THIS DECEMBER WE WILL
DISCUSS THE DEVELOPMENT OF THE
GLOBAL A STOCK TAKE.
WHICH WILL PROVIDE METRICS AND
ANALYSIS FOR GREENHOUSE GAS.
EMISSION REDUCTION.
MEASURES THIS IS ANOTHER PLACE
WHERE CALIFORNIA CAN LEAD.
CALIFORNIA NEEDS ITS OWN PUBLIC
INDEPENDENT RETROSPECTIVE
ANALYSIS OF CLIMATE CHANGE
POLICIES AND THEIR EFFECTIVENESS
WHICH WILL PROVIDE THIS
LEGISLATURE AND THE STAKEHOLDERS
AN OPPORTUNITY TO BETTER
UNDERSTAND WHAT YOU'RE RESOURCE
BOARD. A HOW THE EARTH'S
RESOURCE BY ROAD COMES THROUGH
ITS CONCLUSIONS.
THE METRICS FORMULAS AND
ASSUMPTIONS UTILIZED TO DEVELOP
AND EVALUATE THE SUCCESS OF OUR
SCOPING PLANS AND OUR PROGRAMS.
THIS WOULD ALLOW THE AIR
RESOURCE BOARD TO LEAD THE WORLD
ONCE AGAIN BY FOR PROVIDING A
MODEL FOR THE EVALUATION THE CAN
BE USED IN THE DEVELOPMENT OF
GLOBAL STOCK TAKE.
FURTHERMORE WITHOUT THIS
KNOWLEDGE
STATUS IN JEOPARDY OF NOT ONLY
NOT ACHIEVING YARD ARE SENATE
BILL THIRTY TWO TARGETS BUT
MAKING IT MORE IMPORTANT FOR.
THAT THUS MAKING IT MORE
IMPORTANT FOR YOUR THE AIRPORT
TO TAKE ACTION NOW.
WHAT IS VERY CLEAR TODAY IS THAT
A GREAT PARTNERSHIP NEEDS TO
TAKE PLACE WITH THE LEGISLATURE
IN THE AIRPORT IN EVALUATING IN
MANAGING CALIFORNIA'S CLIMATE?
CHANGE PORTFOLIO.
ESTATE A VERSION OF A GLOBAL.
STOCK TAKE IS A CRITICAL STEP
TOWARDS ENHANCING THIS
PARTNERSHIP.
WITH THAT I WANT TO THANK EVERY
PANELISTS THE MEMBERS AND STAFF
WHO WERE HERE AND THE PUBLIC FOR
TERRY PARTICIPATING IN OUR FIRST
HEARING. IN.
TWENTY EIGHTEEN I WOULD FORWARD
TO A VERY PRODUCTIVE AYE YEAR
OLD THIS HEARING SECURE